Gold rose on Tuesday afternoon although it remains some way below the psychologically important $1,200 level where it traded at the start of the month.
The spot gold price was last at $1,175.80/1,176.90 per ounce, up $3 on Monday’s close, having found some support from a slightly softening in the dollar – it was last at 1.1231 against the euro.
In a quiet day for data, US wholesale inventories disappointed at 0.4 percent but JOLTS job openings at 5.3 million beat expectations. Earlier, China’s CPI and PPI for May both undershot at 1.2 percent and -4.6 percent respectively – readings of 1.3 percent and -4.5 percent had been expected.
Palladium, however, has fallen to the lowest since April 1 at $741/746, down $1. The metal hit a 2015 peak in March when it broke above $833 but has since fallen 11 percent, under increasing pressure from concerns that stockpile sales will counter the supply deficit, while auto demand has been weaker than hoped.
“Although US and EU auto sales are doing well, Chinese growth is slowing. In April global auto sales were up just two percent, so the metal, having been puffed up by the image of good auto sales, has struggled as the reality is not that hot,” FastMarkets analyst William Adams said.
“But despite a more bearish environment, prices have now tended to stay down at these levels for any length of time in recent months/quarters,” he added.
Silver was last at an unchanged $15.94/15.98 per ounce while platinum at $1,106/1,111 was up $6.
(Editing by Mark Shaw)
The post Gold price climbs but palladium slides on deficit doubts appeared first on The Bullion Desk.
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