(Updates prices)
* Spot gold up about 0.6 pct so far this month
* Palladium hits a record high of $1,197.50/oz
* Platinum poised for fourth weekly decline
By Swati VermaBENGALURU, Nov 30 (Reuters) - Gold edged lower on Friday asthe dollar firmed ahead of an expected meeting between U.S.President Donald Trump and China's President Xi Jinping at theG20 summit, but bullion was on track to post its second straightmonthly gain.Palladium soared to a record high on the back of astructural deficit in the market due to a shortage of supply,leaving it about $23 shy of parity with gold.
Spot gold was down 0.2 percent at $1,221.26 per ounceat 1320 GMT. U.S. gold futures inched 0.3 percent lowerto $1,220.20 an ounce.Trump and Xi are expected to discuss trade on the sidelinesof the G20 summit on Saturday in Argentina, where global tradetensions are expected to dominate the agenda."There is caution ahead of the G20 meeting between Trump andXi, a little bit of nervousness about placing fresh positionsahead of their discussion, where the outcome is pretty muchuncertain," said Capital Economics analyst Ross Strachan.The dollar was firmer as markets awaited the outcome of thetalks. "Gold has been quite stable so far, which reflects therelative stability we're seeing in the dollar ahead of the G20summit. How gold responds will depend on the message conveyed bythe two Presidents," said Craig Erlam, an analyst at OANDA."A break above $1,240 would indicate some encouragingprogress in talks and take out key upside resistance, with thenext notable level being $1,260.""Equally, a break below $1,200 would suggest a failure tomake progress, bringing $1,180 into focus."Bullion was on track to post a second straight monthly gain,up about 0.6 percent."The setup for gold is getting better and better,particularly due to the uncertain economic outlook due to theTrump presidency, and gold looks set for a strong 2019," MarkO'Byrne, research director of Dublin-based gold dealer GoldCore,said.Palladium rose 1.2 percent to $1,194.87 per ounce, havingstruck a record high of $1,197.50 earlier in the session.
The metal, used in emissions-reducing autocatalysts, wasalso poised for its biggest monthly gain since January 2017."The key aspect for the palladium market is the very largescale structural deficit. What you've seen recently is moreinvestors getting attracted to it as it hits fresh recordhighs," Capital Economics' Strachan said."In the short term, we could see prices drop back preciselybecause of the auto picture, with Chinese sales set to declinefor the year as a whole for the first time in 28 years." Spot silver fell 0.6 percent to $14.22 per ounce.Platinum dipped 1.5 percent to $804.74, on track fora fourth consecutive weekly decline. The metal is set to fallmore than 3 percent in November, after gaining in the previoustwo months.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Gold palladium ratio ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Swati Verma in Bengaluru; editing by David Evansand Kirsten Donovan)
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