* Palladium hits 2-yr, platinum 20-mth high on demand view
* Positive news from General Motors boosts PGMs
* Gold rises on uncertainties over Greece
* Coming up: GFMS Platinum/Palladium report on Thursday
(Recasts, adds closing prices, comments; changes byline,
dateline, previous LONDON)
By Frank Tang
NEW YORK, April 21 (Reuters) - Palladium rose 2 percent to
a two-year high on Wednesday as strong Chinese import data
boosts demand expectations, while gold climbed to $1,150 an
ounce on uncertainties about Greece's debt crisis.
Platinum group metals (PGM), mostly consumed by the auto
industry and the jewelry sector, hovered close to their highest
in about two years as investors bet on a rosy global economic
recovery.
"If you look at the Chinese import data, that explains the
jump in platinum and palladium prices. The increase in import
was huge," said James Steel, chief commodity analyst at HSBC.
Official customs figures showed that China's palladium
import rose 110 percent to 3,221 kg (113,379 ounces) in March
alone, while platinum import jumped 11,749 kg (413,565 ounces)
in the same period. [] []
Chinese car sales have been strong so far this year,
growing by almost two-thirds last month as buoyant consumer
sentiment lifted spending, while the leading U.S. market is
also recovering from last year's slump.
Spot palladium <XPD=> hit a two-year high at $568 an ounce,
and was at $563.50 at 2:02 p.m. EDT (1802 GMT), compared with
$1,139.50 an ounce late in New York on Tuesday.
Spot platinum <XPT=> rose to $1,737.50 an ounce, its
highest since August 2008 and was last at $1,731 an ounce,
versus $1,714 an ounce the previous session.
Also driving PGM prices are the U.S. platinum and palladium
exchange traded funds run by London-based ETF Securities, which
have increased their holdings to nearly 1 million ounces of the
combined metals.
Fred Jheon, managing director of ETF Securities' U.S. unit,
cited positive auto sales figures and news that General Motors
Co [] had completed repaying U.S. and Canadian government
loans. "That all bodes well for both platinum and palladium,"
he added.
GM CEO Ed Whitcare said the company could launch an initial
public offering by the end of the year, and that first-quarter
results will show positive momentum. []
PGMs are used by the auto industry as catalytic converters
to clean tailpipe emissions. While palladium is widely employed
in gasoline vehicles, most diesel engines such as trucks
require platinum autocatalyst.
Palladium and platinum have risen by about 39 and 18
percent respectively so far this year, compared with gold's 4.5
percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on palladium's price performance against platinum
and gold, click:
http://link.reuters.com/xyr78j
For a story on gold and platinum ratios, click on
[]
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The market is awaiting an annual platinum/palladium
industry report by respected metals consultant GFMS Ltd due
Thursday.
GOLD DEFIES DOLLAR RISE
Gold rose in spite of the dollar's strength against the
euro, and that signaled underlying strength in the market due
to uncertainty about Greece's ability to repay its debt,
analysts said. []
"It's possible that the nature of the sovereign risk is
going to benefit gold more positively," HSBC's Steel said.
Spot gold <XAU=> was at $1,145.15 an ounce, versus
$1,139.50 an ounce late in New York on Tuesday.
U.S. gold futures for June delivery <GCM0> settled up $9.60
at $1,148.80 an ounce on the COMEX division of the NYMEX.
Silver <XAG=> was at $18.05 an ounce versus $17.81 an
ounce.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1148.80 9.6 0.8 1096.20 4.8
US silver <SIK0> 18.078 0.257 1.4 16.845 7.3
US platinum <PLN0> 1740.30 18.50 1.1 1471.00 18.3
US palladium <PAM0> 568.25 16.85 3.1 408.85 39.0
Prices at 2:43 p.m. EDT (1843 GMT)
Gold <XAU=> 1145.05 5.55 0.5 1096.35 4.4
Silver <XAG=> 18.05 0.24 1.3 16.84 7.2
Platinum <XPT=> 1732.00 18.00 1.1 1465.50 18.2
Palladium <XPD=> 561.50 12.500 2.3 405.50 38.5
Gold Fix <XAUFIX=> 1143.00 -0.75 -0.1 1104 3.5
Silver Fix <XAGFIX=> 17.82 -18.00 -1.0 16.99 4.9
Platinum Fix <XPTFIX=> 1730.00 9.00 0.5 1466 18.0
Palladium Fix<XPDFIX=> 559.00 4.00 0.7 402 39.1
(Additional reporting by Humeyra Pamuk in London; Editing by
Marguerita Choy)
