Feb 10 (Reuters) – Platinum raced to a six-year peak while palladium jumped over 3% on Wednesday on hopes of a fillip to demand from the automobile sector as the economy recovers, with supply likely to remain strained.
Platinum climbed 5.3% to $1,237.45 per ounce by 1:41 p.m. EST (1841 GMT), having earlier hit its highest since February 2015 at $1,250.00.
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Palladium rose as much as 3.1%, and was last up 1.4% at $2,351.59.
Spot gold meanwhile, rose 0.3% to $1,842.66. U.S. gold futures settled up 0.3% at $1,842.70.
“Gold’s in a bit of tug of war,” said ED&F Man Capital Markets analyst Edward Meir, adding that while the weaker dollar is bullish, there are expectations that a big U.S. stimulus package may eventually lead to higher interest rates, which will increase the opportunity cost of holding bullion.
Silver , however, eased 0.6% to $27.05 an ounce.
A retail frenzy last week had driven silver up to as high as $30.03, before a sharp retreat. Analysts projected strong demand for silver this year, given its industrial applications, including solar cells.
“People are now trading silver very cautiously given the volatility, and they need something more clear from Powell before resuming the upside,” said Bob Haberkorn, senior market strategist at RJO Futures.
Reporting by Eileen Soreng in Bengaluru; Editing by Steve Orlofsky
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