LONDON: Gold climbed towards a seven-year peak on Wednesday as concerns over the global economic impact of the coronavirus epidemic boosted safe-haven interest, while palladium resumed its record rally driven by concerns over a supply shortfall.
Spot gold rose 0.5 per cent to $1,609.63 per ounce by 1057 GMT. The metal jumped to $1,610.72 earlier, its highest since Jan 8, when gold hit its highest in nearly 7 years. US gold futures rose 0.6pc to $1,612.90.
Gold in euros hit an all-time peak of 1,491.01 euros per ounce.
Investors await the minutes of the Federal Reserve’s Jan 28-29 policy meeting, due at 1900 GMT. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Indicative of investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.6pc to 929.84 tonnes on Tuesday, their highest since Nov 11, 2016.
Elsewhere, palladium scaled a record high of $2,841.54 an ounce and was last up 5.2pc at $2,771.77.
The autocatalyst metal, which had gained 54pc in 2019 on supply shortages, will be in a substantial deficit in 2020 as well, Anglo American Platinum Ltd said.
Ongoing power outages in South Africa — one of the largest producers of the metal — “just further aggravates the situation and is a supportive element,” he added.
Silver gained 1.1pc to $18.36, having earlier hit a more than one-month high at $18.39, while platinum rose 2.1pc to $1,012.69.
Published in Dawn, February 20th, 2020
