Eskom helps push palladium to a 15th day of gains
With SA mines closing due to load-shedding, the metal is leaving gold in the dust
London — Palladium has risen for a 15th day, heading for its longest run of gains on record and exceeding the highest price of gold ever reached.
Spot palladium touched a record of $1,940.34 an ounce on Thursday, extending its year-to-date gains to 54%. Prices have been driven by supply concerns as mines in SA, the world’s number two palladium producer, were shut down for 24 hours this week because of electricity outages. State power utility Eskom is still implementing rolling blackouts, although at a lower level.
“It seems that nothing can slow palladium,” said Daniel Briesemann, a Commerzbank analyst. “Even though we regard the steep price rise as exaggerated, there is no end in sight to the rally.”
Palladium’s gains on Thursday propelled it past gold’s 2011 record of $1,921.17 an ounce.
There’s a good chance that palladium will touch $2,020 before 2020, said Jonathan Butler, precious metals strategist at Mitsubishi Corporation UK Plc. “SA electricity supply concerns have helped palladium this week, together with still strong physical demand,” he said.
Platinum also gained, with spot prices adding 0.6% by 8.17am in New York.
Spot gold was little changed as investors weighed the US Federal Reserve’s signal that it would keep interest rates on hold through to 2020. Focus now turns to trade ahead of a December 15 deadline for more US tariffs on Chinese goods, as well as the UK elections.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.