Palladium hits record high on mounting concerns over supply
The rally has accelerated in recent days amid growing tensions between the US and Russia, one of the top producers of palladium
Palladium has climbed to a record on concerns about tightening supplies of the metal, which is mainly used in catalytic converters that curb vehicle emissions. Prices rose as much as 1.8% in London, pacing gains among precious metals. The rally accelerated in recent days amid growing political tensions between the US and Russia, one of the top producers of palladium, as well as stimulus measures in key consumer China. Investors are also piling in, with speculators’ bullish bets at the highest since June. More broadly, the metal has been supported by consumers turning toward petrol-driven cars, which tend to use more palladium in automotive catalysts, instead of diesel. Palladium is heading for a third straight annual gain as analysts predict deeper supply deficits.
“Palladium is higher because of expectations of stimulus in China, and higher gold prices are also helping,” said Georgette Boele, an analyst at ABN Amro Bank. Still, she suggested that prices may have got ahead of ...