PRECIOUS-Palladium sets all-time high on supply angst; gold pares gains

* Palladium hits record high of $1,621.55/oz
* ECB cuts rates, restarts QE
* U.S. Treasury yields fall

(Adds analyst comments, updates prices)
By Asha Sistla
Sept 12 (Reuters) - 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 XPD= climbed 3% 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.
"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% 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 XAU= was up 0.1% to $1,498.66 per ounce at 02:11 p.m.
EDT (1633 GMT). U.S. gold futures GCcv1 settled up 0.3% 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.
Gold had gained as much as 1.7% 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 XAG= fell 0.3% to $18.02 per ounce, and platinum
XPT= gained 0.6% to $950.