Palladium pricier than gold now after surge in demand
Palladium has gained as buyers scramble for supplies of the metal used in vehicle smog-control devices
New York — Gold just got left behind by one of its sister metals. After a demand-fuelled rally over the past four months that has seen prices hit a record, palladium for immediate delivery topped gold following a surge higher. Palladium, which hasn’t traded at a sustained premium to gold in 16 years, has gained as buyers scramble for supplies of the metal used in vehicle smog-control devices. Demand has risen as consumers turn away from diesel toward petrol-powered cars, which tend to use more palladium in autocatalysts.
“People are grasping for whatever ounces of material they can get” in the palladium market, Tai Wong, head of base and precious metals trading at BMO Capital Markets, said before Wednesday’s levels were hit. “It’s very expensive to borrow, and that is perhaps the biggest factor driving the spot price higher.” Palladium for immediate delivery climbed as much as 1.7% to a peak of $1,252.68/oz, and was at $1,251.88/oz at 9.09am in London, according to Bloomberg p...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.