LONDON: Gold fell on Monday after better-than-expected manufacturing data from China assuaged fears of a slowdown in global growth while deficit-ridden autocatalyst metal palladium soared to an all-time high.

Spot gold was down 0.4 per cent to $1,457.98 per ounce by 1131 GMT. US gold futures fell 0.6pc to $1,463.90 per ounce. Data showing growth in factory activity during November in China, the world’s second-largest economy and biggest gold consumer, pushed up equity markets.

“At least in the short-term, this kind of data will keep gold prices in check,” said Julius Baer analyst Carsten Menke.

Gold is considered a safe store of value at times of political or economic uncertainty.

Gold could move up in the medium to longer term as fears of a slowdown still exist, Julius Baer’s Menke added. Investors now await manufacturing data from the US later in the day.

Palladium was up 0.3pc at $1,847.08, having surged to an all-time high of $1,851. The metal has risen about 46pc this year.

“The rising prices for the scarcity-hit metal have attracted a lot of carmakers who are getting cold feet. These people have taken forward positions in anticipation that prices will go even higher in the future,” said Commerzbank analyst Eugen Weinberg.

Chiefly used in vehicle exhausts to reduce harmful emissions, platinum is favoured for diesel engines and palladium is preferred for petroleum. Tightening emissions regulations are putting more palladium in each vehicle, supporting consumption even as weakening global growth hits vehicle sales.

Elsewhere, silver fell 0.8pc to $16.88 per ounce, platinum was down 0.9pc at $892 per ounce.

Published in Dawn, December 3rd, 2019