Furthermore, the supply deficit is likely to widen this year as stricter emissions standards increase demand for catalytic converters, Britain-based autocatalyst manufacturer Johnson Matthey said last week. Spot palladium rose to an all-time high of $1,500.50 per ounce and was 0.7 percent higher at $1,490 as of 0800 GMT. The autocatalyst metal has gained almost 19 percent so far this year, making it one of the best performing metals.
Gold prices hit their highest since April 19, 2018 as the dollar was capped on falling US Treasury yields and optimism surrounding trade talks between the United States and China. US President Donald Trump said on Tuesday that trade talks with China were going well and suggested he was open to pushing off the March 1 deadline to complete negotiations.
Most investors expect uncertainties over US-China trade talks to end this week, which will weaken the dollar and support gold, said Hareesh V, head of commodity research at Geojit Financial Services. Progress in trade discussions between the world's top two economies has whisked off the safe-haven appeal for the dollar, making gold more attractive to investors.
Spot gold was up 0.1 percent at $1,342.46 per ounce after rising to a high of $1,346.73 earlier in the session. US gold futures were steady at $1,345.40. Investors are now looking ahead to the release of US Federal Open Market Committee's minutes from its Jan. 29-30 policy meeting at 1900 GMT.
Spot gold may peak around a resistance at $1,351 per ounce, as suggested by a projection analysis and a rising trendline, according to Reuters market analyst Wang Tao.