Gold steadies; palladium retreats after surge towards $2,000/oz
By Karthika Suresh Namboothiri (Reuters) - Gold steadied on Tuesday as robust U.S. manufacturing data lifted risk appetite and countered support from lingering doubts on U.S.-China trade, while scarce palladium retreated after its record run towards the $2,000 an ounce level.
By Karthika Suresh Namboothiri
(Reuters) - Gold steadied on Tuesday as robust U.S. manufacturing data lifted risk appetite and countered support from lingering doubts on U.S.-China trade, while scarce palladium retreated after its record run towards the $2,000 an ounce level.
Spot gold was little changed at $1,476.46 per ounce as of 11:41 a.m. ET (1640 GMT). U.S. gold futures inched 0.1% higher to $1,481.10.
U.S. manufacturing output rebounded more than expected in November, the U.S. central bank said, keeping Wall Street near record levels.
"The competition for gold today is equities... but there is danger out there in the way central banks are behaving, gold has to reflect that. We've created an environment where we require central banks to move the economy forward," said Rob Lutts, chief investment officer at Cabot Wealth Management.
While the United States and China claimed to have reached an initial trade agreement, there were still many questions left unanswered.
The preliminary deal reached last week will double U.S. exports to China, White House adviser Larry Kudlow said on Monday. Washington will also reduce some tariffs on Chinese goods.
U.S. officials have touted a deal, but Chinese officials have been more cautious, emphasizing the dispute has not been completely settled.
"From a technical standpoint, gold is in a bull market... Trade deficits and negative interest rates across the globe have been good for gold," said Michael Matousek, head trader at U.S. Global Investors.
Elsewhere, British Prime Minister Boris Johnson, emboldened by election victory, put the risk of a hard Brexit back on the table, saying he would make extending the transition period beyond 2020 illegal.
Gold is generally used by investors as a place to park assets during economic or political uncertainty.
Spot palladium shed 01.5% to $1,948.14 per ounce, retreating from an all-time high of $1,998.43 hit earlier in the session.
The metal, used heavily by the auto-sector in the making of catalytic converters, could see a surge in demand owing to stringent anti-carbon emissions globally.
"Supply is tight and when you're adding the speculation about a potential pick-up in demand due to recovery in the global economy, you have a perfect storm of bullish news continuing to keep palladium supported," Saxo Bank analyst Ole Hansen said.
Last week's mine shutdowns in South Africa added fuel to palladium's upward surge.
"It's times like these that create the opportunities to buy on pull backs," Matousek said.
Platinum eased 0.7% to $922.56 an ounce, while silver was little changed at $17.03.
(Reporting by Karthika Suresh Namboothiri and Eileen Soreng in Bengaluru; Editing by Sandra Maler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.