(Adds comments, updates prices)
* Palladium scales record high of $2,393.38/oz
* Palladium may enter ninth straight year of deficit - UBS
* Platinum jumps to highest level since February 2017
By K. Sathya Narayanan
Jan 16 (Reuters) - Gold was little changed on Thursday, but
still holding above the key $1,550 level as the signing of a
preliminary trade deal between the United States and China
failed to address concerns about tariffs and other core issues.
Record-setting palladium, on the other hand, soared more
than 5%, while platinum jumped to its highest in almost three
years.
Spot gold XAU= was at $1,555.56 per ounce as of 1309 GMT.
U.S. gold futures GCcv1 were up 0.1% to $1,555.90.
The much-awaited Phase 1 trade deal was signed by U.S.
President Donald Trump and Chinese Vice Premier Liu He on
Wednesday, defusing an 18-month-long row that has roiled global
markets. "From many people's perspective the deal looks quite
underwhelming, there is still a lot which needs to be resolved
... that is one of the reasons why gold has upheld the level of
$1,550," OANDA analyst Craig Erlam said.
"The fact that the tariffs are still in place gives more
hope that the Phase 2 is being taken more seriously."
Analysts noted the Phase 1 deal fails to address structural
economic issues, doesn't fully eliminate the tariffs, and sets
hard-to-achieve purchase targets, leaving a number of sore spots
unresolved. World stocks were hovering near record highs on Thursday
after the signing of the deal, keeping gold prices in check.
MKTS/GLOB
Elsewhere, palladium XPD= gained 5% to $2,377 an ounce
after hitting a record peak of $2,393.38 earlier in the session.
"Palladium's price rally is supported by its strong
fundamentals, as we expect the metal to enter its ninth straight
year of market deficit this year," UBS analysts said in a note.
"While higher prices should bolster scrap supply growth in
2020, we think mine supply growth is likely to remain
constrained due to a lack of new projects."
Platinum XPT= was up 1.8% at $1,038.42, having hit its
highest since February 2017 at $1,040.25.
Platinum broke above the key psychological level of $1,000,
which gave the market confidence to follow through and buy, said
Bernard Sin, group head of trading at MKS.
Analysts also said the huge price difference between
platinum and palladium had also been supporting platinum prices.
"At the end of the day, there is some demand (for platinum)
as a substitute for palladium," Sin added.
Both platinum and palladium are primarily used by automakers
for catalytic converter manufacturing to clean car exhaust
fumes.
Silver XAG= was steady at $18 per ounce.
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Palladium widens its lead over platinum https://tmsnrt.rs/38fVVzp
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