Palladium tops $1,600 amid precious metal rally

Thursday, 11. July 2019 10:46

Bets on a slowdown in the United States economy strengthened the demand for safe havens on Thursday including gold and its asset class. Palladium surpassed $1,600 per ounce for the first time since March 22 and came near the record high. The Federal Reserve cemented expectations of an interest rate cut later this month as investors parsed through minutes from the June meeting after yesterday's testimony of Chair Jerome Powell in Congress. He said the strong data in the latest monthly US jobs report still leave trade uncertainty and lagging inflation as the main "crosscurrents" and hinted that easing measures may be warranted.

Lower borrowing costs pressure yields downward and may underpin consumer price growth, where precious metals are the most conventional shield. Benchmark government bonds rose as did the yen and the Swiss franc, but stocks were also slightly higher while the dollar dropped.

Gold hit an eight-day high at $1,427.12 and traded 0.33% up at $1,423.54 per ounce as of 10:45 am CET. Silver was 0.39% higher at $15.29 and platinum gained 0.55% to $831.52 for one troy ounce. Palladium jumped 0.48% to $1,598.49 per ounce after hitting $1,602.26.

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