The Financial Post reported that the gold-palladium ratio slipped to 1.81 on Monday, its lowest point in over two years, on the back of US jobs data that suggests the country’s recovery is on track and news that Standard & Poor’s has revised its sovereign credit rating for the US upwards.
As quoted in the market news:
Rising optimism over the U.S. economy has battered gold, which is widely viewed by investors as a hedge against financial market instability.
It had benefited strongly in recent years from emergency stimulus measures the Federal Reserve has used to address the financial crisis. Speculation that these may soon be reined in has helped knock gold prices 15 percent lower this year in their worst first-half performance in more than 30 years.
Conversely, palladium, the most industrial of the main precious metals, has outperformed, climbing nearly 10 percent in the same timeframe.