(Adds comment, updates prices)
* Palladium scales record high of $2,395.14/oz
* Platinum jumps to highest level since February 2017
* U.S. data shows solid economic strength
By Eileen Soreng
Jan 16 (Reuters) - Gold slipped on Thursday as the
safe-haven metal was hurt by upbeat U.S. economic data that
signalled a healthy economy and as stock markets climbed on
optimism over the signing of the U.S.-China Phase 1 trade deal.
Spot gold XAU= fell 0.3% to $1,551.53 per ounce at 2:37
p.m. EST (1937 GMT). U.S. gold futures GCv1 settled down 0.2%
at $1,550.50.
"Gold is softer right now on stronger equities, and as the
geopolitical front is also getting a little quiet when it comes
to China and Iran issues," said Bob Haberkorn, senior market
strategist at RJO Futures.
World stocks scaled new records, while the dollar index
.DXY erased earlier losses after multiple data releases
painted a positive U.S. economic picture. MKTS/GLOB USD/
U.S. retail sales rose for a third straight month in
December and a U.S. Mid-Atlantic manufacturing activity gauge
revived to its highest in eight months. U.S. holiday sales rose 4.1% in 2019 from a year earlier, as
steady wage and job growth encouraged shoppers to splurge on
groceries, beverages and furniture, the National Retail
Federation said. The much-awaited Phase 1 trade deal was signed by U.S.
President Donald Trump and Chinese Vice Premier Liu He on
Wednesday, defusing an 18-month-long row that roiled global
markets. Analysts noted the deal fails to address structural economic
issues, does not fully eliminate the tariffs, and sets
hard-to-achieve purchase targets, leaving a number of sore spots
unresolved. Elsewhere, palladium XPD= gained 1% to $2,286.43 an ounce,
after hitting a record peak of $2,395.14 earlier in the session.
"It's such a small, tight market that when someone takes a
big lump of supply out in the short term the market can become
completely ruptured", said Tai Wong, head of base and precious
metals derivatives trading at BMO.
"I'd be surprised if we don't see a correction sometime in
the next week or so."
Platinum XPT= dipped 1.9% to $1,001.12, having hit its
highest since February 2017 at $1,041.05.
There could be some profit-taking in platinum after a
substantial increase in net long positions being established as
implied by the open interest data, said Standard Chartered Bank
analyst Suki Cooper, adding there is a potential for demand
growth in longer term.
"Key level to watch in the near term is $979, there should
be some initial support around those levels."
Both platinum and palladium are primarily used by automakers
for catalytic converter manufacturing to clean car exhaust
fumes.
Silver XAG= fell 0.3% to $17.94 per ounce.
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Palladium widens its lead over platinum https://tmsnrt.rs/38fVVzp
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