Palladium sets record high on Trump's hint to Putin, Xi

Monday, 03. December 2018 15:42

Precious metals jumped on Monday together with a wide range of assets, particularly stocks and oil, while United States Treasuries fell significantly. Investors were upbeat on a tentative agreement between President Donald Trump and China's leader Xi Jinping for a truce in the trade war and rolling back protectionist measures. He also suggested he would work with the Kremlin and the government in Beijing to stop the arms race.

Furthermore, market watchers interpreted the latest signals from Russia and Saudi Arabia as favorable amid talks on a global level (excluding US, Canada and Norway) to reduce production of crude in order to support prices. However, it leaves Brexit as a prominent short-term risk.

Palladium spiked to $1,216.2 per ounce, in the seventh day of records since October 23, against the backdrop of Trump's claim that China would cut tariffs for American cars and boost demand. The material is mostly produced in Russia and mostly used in catalytic converters for gasoline-powered engines. It traded 2.8% higher at 3:41 pm CET, selling for $1,213.58 for one troy ounce, and its sister metal platinum rose 1.05% to $806.92. Gold surged 0.99% to $1,233.7 following an increase to $1,234.39, the highest point since November 7. Silver was 2.41% up at $14.52 per ounce, after climbing to $14.57, last seen on November 8.

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