A supported palladium-gold catalyst is produced under mild conditions using a commonly available base, such as sodium hydroxide (NaOH) or sodium carbonate (Na2CO3). In this method, support materials and a base solution are mixed together and the temperature of the mixture is increased to a temperature above room temperature. Then, palladium salt and gold salt are added to the mixture while maintaining the pH of the mixture to be greater than 7.0 and keeping the mixture at a temperature above room temperature. This is followed by cooling the mixture while adding acetic acid to maintain the pH of the mixture to be within a desired pH range, filtering out the supported palladium-gold particles, washing with a pH buffer solution and calcining.