Bengaluru — Palladium prices broke above $1,500 for the first time on Wednesday due to a prolonged supply deficit, while gold rose to a new 10-month high as the dollar struggled before the US Federal Reserve’s policy meeting minutes. Palladium is crucial in the making of catalytic converters used in exhaust systems of vehicles, and an improvement in demand from the auto sector has supported the metal's surge. “Demand [for palladium] is increasing year by year because of catalyst demand for [petrol] engines. Environmental requirements are getting stronger, which means more palladium is needed in [manufacturing] a car,” said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank. Furthermore, the supply deficit is likely to widen in 2019 as stricter emissions standards increase demand for catalytic converters, Britain-based autocatalyst manufacturer Johnson Matthey said last week. Spot palladium rose to a record high of $1,500.5/oz and was up 1.3% at $1,499 as of 4.20am GMT. The a...
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.