PRECIOUS-Palladium reaches a record of supply deficit; gold gains

(Update prices, add a chart)

* Palladium rises to $ 1,458 / ounce, the highest record

* Gold is likely to retest the $ 1,326 level – analyst

* The dollar falls from the two-month high

* GRAPHIC-2019 Asset Performance: by K. Sathya Narayanan
February 18 (Reuters) – Palladium reaches a record high
On Monday, a sustained supply deficit boosted the investment record
for the autocatalyst metal, while gold reached its peak
more than two weeks on a dollar lower.

Spot palladium reached a high of $ 1,458 per ounce,
its record, and increased by 1.5% to 1,454 USD per
ounce from 13:05 GMT.
The manufacturer of autocatalysts Johnson Matthey said in a
report last week that the deficit in the palladium market will be
significantly expand this year as more stringent emission standards
increase the demand. "The market is fundamentally strong," analyzes analyst Julius Baer
Carsten Menke said. "(The) current deficit and autocatalyst
the producers say that they do not see widespread substitution
palladium to platinum really reinforce the predominance
Positive feeling. "
Both metals are mainly consumed by car manufacturers for use in
manufacture of catalytic converters, but platinum is heavier
used in diesel vehicles that have fallen out of favor since
the Volkswagen's rigging scandal broke in 2015.
Palladium, unlike platinum, benefited from the transition to
Petrol engines and growth expectations of the electric hybrid
vehicles, which tend to be partly gasoline.
This helped the metal to largely ignore declining car sales
worldwide. "The industrial demand is good, but not booming given
the automotive markets are weak. (However) the case for a multiannual
the deficit is much more convincing, and there is a very good price
tend to attract a lot of investment, "Menke said.
However, even if prices will probably rise in the short term,
he said "in the longer term let's say the next 12 months, assuming
global car sales fail to rebound as the global economy slows,
the prices will be pushed back ".
Meanwhile, gold spot increased 0.3% to $ 1,325.51
per ounce, having already reached its highest level since the end of
January at $ 1,326.07 while the dollar weakened against growing optimism
for a trade agreement between the two largest economies in the world. US gold futures advanced 0.5% to $ 1,328.90 a year.
ounce.
"Market will look closely at US and Chinese data
and gold could target a new test level of $ 1,326 ", said
Nicholas Frappell, Global Managing Director at ABC Bullion.
Investors will also pay attention to the minutes of the United States.
January Federal Reserve Policy Meeting Held Wednesday
more clarity on interest rate increases this year. Higher rates
tend to weigh on nonproductive gold.

Of the other precious metals, platinum increased by 0.5
percent at $ 806.20 an ounce, having already touched a loved one
the two-week high at $ 807, while the money was up 0.2% at
$ 15.80

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(Report by K. Sathya Narayanan and Karthika Suresh
Namboothiri in Bengaluru; Edited by Jan Harvey)

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