Silver gained 1.1%, platinum rose 2.1% and palladium hit an all-time high after soaring 5.2%
Bengaluru — Gold climbed towards a seven-year peak on Wednesday as concerns over the global economic effect of the coronavirus epidemic boosted safe-haven interest, while palladium resumed its record rally driven by concerns over a supply shortfall.
“We’re still concerned that the recovery of economic activity might take a little bit longer in China,” Julius Bär analyst Carsten Menke said. “On the ground, the impact seems to be stronger than currently reflected in the stock markets. Gold investors are taking a closer look at these developments that’s why prices are higher.”
Markets were alarmed on Tuesday after iPhone maker Apple warned that its sales might fall because of slow ramp-ups in manufacturing facilities in China.Investors await the minutes of the US Federal Reserve’s January 28-29 policy meeting, due at 7pm GMT. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
In other metals, palladium scaled a record high of $2,841.54 an ounce and was last up 5.2% at $2,771.77. The automotive catalyst metal, which gained 54% in 2019 on supply shortages, will be in a substantial deficit in 2020 as well, Anglo American Platinum said.
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