Gold price slips on US rate rise bet; palladium holds at 17-mth highs

The gold price edged lower still on Thursday December 1 after a run of positive US data raised the likelihood that the US will raise interest rates later this month.

Spot gold was recently quoted at $1,169/1,170.15 per oz, down $2.75 on Wednesday’s close.  

“Given all the political uncertainty that lies ahead, we expect gold to pick up further safe-haven demand but the market is for now no doubt focused on a December 14 US interest rate rise. It may need to get that out of the way before finding a base,” Metal Bulletin analyst William Adams said.

Yesterday’s ADP non-farm employment change – a precursor to Friday’s blockbuster US jobs report – surprised on the upside at 216,000. A reading of 161,000 had been expected.

Elsewhere, China is mulling curbs on gold imports to stem capital leaving the country, according to reports.

“Interest in China is keeping the on-shore premium over loco London gold buoyant around $23; however, the Chinese influence on the broader market looks to be waning as dollar flows continue to dictate price action,” MKS noted.

In currencies, the dollar index was last at 101.42, down 0.15%.

The spot palladium price hit $776.50 per oz, its strongest since June 2015, and was recently quoted at $769/775 per oz, up $3. The spot silver price was just $0.005 higher at $16.480/16.515 per oz while spot platinum at $906/916 per oz was $3 higher.

(Editing by Mark Shaw) 

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