Palladium soars to new record while gold holds firm
The price of palladium, used mainly in emissions-reducing catalysts for vehicles, has leapt more than 60% since hitting a trough in mid-August
Bengaluru — Palladium scaled a new peak on Thursday, driven by a deficit in the auto-catalyst metal and robust demand, while gold held firm on concerns surrounding a US government logjam and Brexit. Spot palladium had jumped 2.5% to $1,393 per ounce as at 11.08am GMT, having hit a record high of $1,397.50, and rising more than 10% so far in January. "Any new high in the market is triggering additional buying ... It is a good old-fashioned squeeze driven by tight fundamentals, strong momentum and low liquidity," Saxo Bank analyst Ole Hansen said. The price of palladium, used mainly in emissions-reducing catalysts for vehicles, has leapt more than 60% since hitting a trough in mid-August. The metal overtook gold in price terms for the first time in 16 years late in 2018. Meanwhile, holdings in palladium exchange-traded funds (ETFs) tracked by Reuters have nearly halved from January 2018 as prices rose. “There is not sufficient supply in the market, so people are purchasing metals from...
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