Gold heads lower

PALLADIUM scaled a record peak yesterday due to a prolonged supply deficit, while gold slipped as the dollar gained ground ahead of a policy decision by the Federal Reserve. US

Spot palladium was down 0.3 percent at $1,591.50 an ounce, as of 0908 GMT, after hitting an all-time high of $1,606.76 earlier in the session.

Platinum was 1.3 percent firmer at $856.75 an ounce, after touching its highest since March 4 at $858.64 earlier in the session.

“Palladium market is definitely driven by constraints on the supply side and the possibility of a ban from Russia will keep palladium in particular, and platinum to an extent, extremely well bid,” said Jeffrey Halley, a senior market analyst with OANDA.

Russia, a major producer of palladium, is mulling a ban on the export of precious metals’ scrap and tailings to promote domestic refining of the materials.

Palladium and its sister metal platinum are used in emissions-cutting auto-catalyst, but palladium is used more in gasoline engines.

Palladium prices have nearly doubled since mid-August and are up about 27 percent so far this year.

Meanwhile, gold prices dipped as the dollar firmed, making bullion expensive for holders of other currencies.

Spot gold was down about 0.4 percent at $1,301.38 per ounce.

gold futures slipped 0.4 percent to US $1,301.7.

“The firm dollar and gains in equities are headwinds for gold today and currently the risk appetite is slightly high,” said Benjamin Lu, an analyst with Singapore-based Phillip Futures. — Reuters.