(Updates prices)
* Palladium hits all-time high of $2,841.54/oz
* Silver hits a peak since Jan. 8 at $18.39/oz
* SPDR Gold holdings rise to over 3-year peak
By Brijesh Patel
Feb 19 (Reuters) - Gold rose on Wednesday, holding above
$1,600 per ounce, as worries over the new coronavirus and its
impact on global growth boosted safe-haven demand, while
palladium continued its record run driven by short supplies of
the metal.
Spot gold XAU= was up 0.4% to $1,607.61 per ounce by 2:06
p.m. EST (1905 GMT). The session high was $1,610.80, the highest
price since Jan. 8, when gold hit a nearly seven-year high.
U.S. gold futures GCv1 settled 0.5% higher at $1,611.80 an
ounce.
"Gold is holding above the $1,600 level, we went through
pretty quick," said Bob Haberkorn, senior market strategist at
RJO Futures. Questions about the level of impact of the virus
were lending the metal ample support, he said.
China is struggling to get manufacturing back online after
severe travel restrictions were imposed to contain the
coronavirus. Adding to concerns, Apple Inc AAPL.O
on Monday warned that its sales might fall because of slow
ramp-ups in manufacturing facilities in China. "The uncertainty regarding when the global supply chain will
return to normal is likely to continue to squelch trader and
investor risk appetite for at least the near term. That's
bullish for the precious metals markets," Kitco Metals senior
analyst Jim Wyckoff said in a note.
Reflecting positive investor sentiment toward bullion,
holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , rose to their highest since Nov.
11, 2016, on Tuesday. GOL/ETF
Limiting gold's advance were better-than-expected U.S.
housing starts data and stronger equity markets, lifted by signs
of slowing coronavirus infections. .N Federal Reserve policymakers were cautiously optimistic
about their ability to hold interest rates steady this year,
minutes of the central bank's last policy meeting showed, even
as they acknowledged new risks caused by the epidemic.
Palladium XPD= gained 1.5% to $2,675.64 an ounce after
hitting a record high of $2,841.54.
The autocatalyst metal gained 54% in 2019 on supply
shortages and will remain in a substantial deficit in 2020 as
well, Anglo American Platinum Ltd said. "What we are seeing is likely some commodity traders loading
up on the metal in anticipation of China's door reopening," said
Daniel Ghali, commodity strategist at TD Securities.
"Once the coronavirus impact on logistics and supply chains
dissipates, we anticipate that demand from China for palladium
is going to come back very quickly, which will further
strengthen the metal's demand."
Silver XAG= rose 0.9% to $18.33 after hitting a more than
one-month high, while platinum XPT= climbed 1.2% to $1,003.55.
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Golds gains on coronavirus woes png https://tmsnrt.rs/2SFBYwH
Golds gains on coronavirus woes interactive https://tmsnrt.rs/37zwJmE
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