Skip to main content

Palladium prices hit an all-time high on Thursday on concerns over tight supplies of the autocatalyst metal due to possible labour issues in South African mines, while gold shed earlier gains on fresh hints of progress in the U.S.-China trade dispute.

Palladium climbed 3 per cent to $1,617 after hitting a record high of $1,621.55 earlier in the session.

“On a fundamental basis for platinum and palladium in particular there are the ongoing wage negotiations taking place in South Africa,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.

Story continues below advertisement

“It is not our base case that we expect there to be significant supply disruption, but given that the palladium market is already undersupplied, any incremental losses in production are likely to only tighten the market further.”

South Africa’s main platinum mining union said on Tuesday it had formally declared that wage talks with major mining companies were deadlocked, raising the possibility of strike action if the issue cannot be resolved.

Palladium, used mainly in emissions-capping catalytic converters for automobiles, has risen about 28 per cent so far this year.

Meanwhile, gold pared early gains after a Bloomberg report said Trump administration officials have considered offering a limited trade deal to China that would delay or possibly roll back some tariffs, in exchange for assurances on intellectual property and agricultural purchases.

Gold was up 0.1 per cent to $1,498.66 per ounce at 02:11 p.m. EDT (1633 GMT). U.S. gold futures settled up 0.3 per cent at $1,507.40.

“Gold just hasn’t been able to recover from that even though someone in the Trump administration came out with a denial,” said Bob Haberkorn, senior market strategist at RJO Futures.

A gauge of global stock markets touched its highest since late July on Thursday on hopes of progress in the U.S.-China trade dispute, sending bond yields off lows hit earlier in the wake of the European Central Bank’s new stimulus measures.

Story continues below advertisement

Gold had gained as much as 1.7 per cent earlier in the session after the European Central Bank cut deposit interest rates and relaunched quantitative easing, bolstering expectations for a dovish stance from the U.S. central bank at its meeting next week.

Silver fell 0.3 per cent to $18.02 per ounce, and platinum gained 0.6 per cent to $950.

Related topics

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies