Palladium traded near a record after topping US$1,800 an ounce as stricter air-quality rules increase demand for the metal used in vehicle pollution-control devices, with prices up more than 40 per cent this year.
Spot palladium was steady at US$1,800.09 an ounce at 10:22 a.m. in Singapore time, after peaking on Monday at US$1,810.20. The metal, mined in South Africa and Russia, has surged for the past six straight quarters.
While car sales have been sluggish, tighter environmental laws in Europe and China are boosting consumption, according to Australia & New Zealand Banking Group Ltd. Production is likely to continue to trail use through 2020, Bloomberg Intelligence analyst Eily Ong said in an Oct 17 note. Speculation that the US and China are moving closer to a trade deal also helped lift prices on Monday.
In other precious metals, gold for immediate delivery was little changed at US$1,492.30 an ounce, after falling 0.8 per cent on Monday as optimism on trade-deal prospects helped push US equities to record highs. Silver and platinum fell.
Source : Bloomberg