Palladium at a record high as gold also gains
Palladium could climb further to $1,500/oz, with gold still in a bullish mood
Bengaluru — Palladium hit a record high on Tuesday, moving close to $1,500, due to a prolonged supply deficit, while gold rose to a near 10-month high as rising optimism for a US-China trade deal subdued the dollar. Spot palladium, which traded as high as $1,491 an ounce, was up 1.5% at $1,479.49 at 11.02am GMT. The deficit will widen this year as stricter emissions standards increase demand for catalytic converters, automotive catalyst manufacturer Johnson Matthey said last week. “The palladium market is facing a substantially growing physical deficit ... driven more from the demand side due to rising automotive demand,” said Philip Newman, director at Metals Focus. “Also, there won’t be a substitution from palladium to platinum as it is very difficult to achieve and takes a very long time to make sure it is compliant.” Both metals are primarily used by vehicle makers in catalytic converters, but platinum is more heavily used in diesel vehicles, which have fallen out of favour sinc...
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