By Barani Krishnan
Investing.com - The United States left tariffs intact on China despite today's historic trade deal, giving the safe-haven crowd a reason to buy gold on Wednesday. Palladium, meanwhile, ticked to another record high, reinforcing its position as the world’s costliest metal.
Gold futures and bullion rebounded from two-straight days of losses as markets vexed over Washington’s decision to keep duties on some $360 billion of Chinese goods, despite the phase one agreement inked between President Donald Trump and China’s Vice Premier Liu He at the White House.
Gold futures for February delivery on New York’s COMEX settled up $9.40, or 0.6%, at $1,554 per ounce.
Spot gold, which tracks live trades in bullion, was up $8.74, or 0.6%, at $1,554.86.
“There are still politically worrisome headlines and one of them is that the U.S. tariffs on China are staying despite the deal between the two countries,” said George Gero, precious metals analyst at RBC Wealth Management in New York. “This basically means the trade war isn’t over, and that’s an incentive for the safe-haven crowd to seek a hedge in gold.”
Analysts said gold also attracted a bid as the U.S. Congress voted to send articles of impeachment against Trump to the Senate, approving seven members to serve as prosecutors in his trial.
Speculators also pushed palladium prices to new peaks on continuous worries of a supply squeeze in South Africa and Russia, which are top producers of the auto-catalyst metal.
Spot palladium was up $62.35, or 2.8%, at $2,256.73 per ounce at 3:30 PM ET (20:30 GMT). It earlier hit an all-time high of $2,262.88.
Palladium futures settled up $41.80, or 2%, at $2,165.10, after touching a record high of $2,178.20.
Palladium led gains across commodities in 2019, rising 55%. Year to date, it is up 13%.