Palladium hits record high on strike threat; gold gains
By Sumita Layek (Reuters) - Palladium hit a new record high on Monday as the threat of strikes in the South-African mining industry exacerbated a supply deficit for the metal, while gold rose as the dollar slipped on signs of a U.S.-China trade deal. Palladium was up 2.2 percent at $1,530.06 an ounce by 11:01 am EST (1601 GMT), after scaling a peak of $1,531, with the autocatalyst metal having soared more than 80 percent since mid-August on a sustained supply shortage
By Sumita Layek
(Reuters) - Palladium hit a new record high on Monday as the threat of strikes in the South-African mining industry exacerbated a supply deficit for the metal, while gold rose as the dollar slipped on signs of a U.S.-China trade deal.
Palladium was up 2.2 percent at $1,530.06 an ounce by 11:01 am EST (1601 GMT), after scaling a peak of $1,531, with the autocatalyst metal having soared more than 80 percent since mid-August on a sustained supply shortage.
At least 15 mining firms in South Africa, home to the world's biggest platinum group metals deposits accounting for over 90 percent of global output, have received notices of strikes next week in support of colleagues at Sibanye-Stillwater who downed tools over wages and job cuts.
"The fundamental issue with palladium is any strike will drive prices through the roof because there is a shortfall with normal production, so any collapse of production will support prices," said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York.
"The threat of the South African mines strike spreading to the platinum mining industry is enough to make people nervous and that's why we're seeing some short-covering in platinum and palladium, driving both the metals higher."
Platinum, which briefly touched its highest since Nov. 20 at $853.50, was up 1 percent at $848.66 an ounce.
Meanwhile, spot gold rose 0.1 percent to $1,329.13 an ounce and U.S. gold futures were down 0.1 percent at $1,331.40.
Spot silver was unchanged at $15.92 an ounce.
U.S. President Donald Trump on Monday said he was optimistic that a final trade deal could be reached with China and that he would hold a summit to sign any pact, having announced on Sunday that he would delay an increase in U.S. tariffs on Chinese goods.
"Much of last year, we saw the dollar benefiting from safe haven flows and gold was suffering because of the dollar's strength. With the easing of the trade tensions, gold prices are likely to benefit," said Suki Cooper, precious metals analyst at Standard Chartered Bank.
"The dollar at the margins has certainly helped provide a boost to gold."
The dollar fell against a basket of other currencies as risk sentiment improved, pushing global equities higher, on signs of a thaw in the trade dispute.
Going forward, it remains to be seen "if capital begins to switch out of the metals into the equity space," Peter Hug, global trading director at Kitco Metals, said in a note.
Investors were now eyeing a testimony by U.S. Federal Reserve Chairman Jerome Powell on Tuesday and Wednesday for further cues on U.S. monetary tightening.
(Reporting by Sumita Layek in Bengaluru; Editing by Marguerita Choy)
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.