LONDON: Gold edged down yesterday, failing to capitalise on a flat dollar and mixed equities, while investors remained cautious ahead of minutes of the US Federal Reserve’s April policy meeting.
Palladium touched a near three-year high and platinum rose near a two-month high, as labour strikes in top producer South Africa dragged on for a 17th week and after an industry report said a shortage of both metals was set to widen this year.
“For palladium, it is the perfect storm of conditions. It’s the South African supply side, which in our estimate cost 600,000 ounces of lost palladium since the start of the strike, Russia and also the investment demand story,” Mitsubishi Corp analyst Jonathan Butler said.
Spot gold was down 0.3 percent at $1,289.45 an ounce by 1224 GMT, while US gold futures fell 0.4 percent to $1,289.50 an ounce.
Platinum rose 0.8 percent to $1,472.70 an ounce, not far from a two-month high of $1,483.50 hit last week, while palladium was up 0.1 percent at $824.50 an ounce, having touched its highest since August 2011 at $828.20 in earlier trade.
European shares were under pressure on Wednesday, spooked by overnight falls on Wall Street, while the dollar was on track for a sixth losing session against the yen and flat against a basket of currencies.
A lower dollar makes gold cheaper for foreign investors, but interest in the metal was still lacklustre in the absence of major economic events. “For the past few weeks, gold has been struggling for direction,” Butler said.
Reuters
