Gold price edges lower, while record-breaking palladium hogs the spotlight

London (Dec 13)  Gold futures drifted lower Thursday, but metals traders remained focused on palladium a day after the industrial metal notched another record close.

Gold futures for February delivery GCG9, -0.18%  were off $3.60, or 0.3%, to $1,246.40 an ounce, while March silver SIH9, -0.28%  declined 5 cents, or 0.3%, to $14.80 an ounce.

March palladium PAH9, -0.46%  , meanwhile, was off $2.50, or 0.2%, to $1,192 an ounce. The contract earlier was trading as high as $1,199, according to FactSet, a day after settling at a record $1,194.50 an ounce.

Underlying support was tied to reports China is preparing to reduce import tariffs on U.S. cars from 40% to 15%, said analysts at Commerzbank. Palladium is used in catalytic converters.

Gold, meanwhile, has been underpinned by inflows from exchange-traded funds totaling nearly 16 tons since the start of the week, the analysts said. Meanwhile, U.K. Prime Minister Theresa May’s ability to survive a leadership challenge Wednesday may have damped haven-related demand for the yellow metal, they said.

In other metals trade, January platinum PLF9, -0.90%  was off $8.60, or 1.1%, to $798.50 an ounce, while March copper HGH9, +0.58%  was up 1.3 cents, or 0.5%, to $2.783 a pound.

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