Palladium rose above $2,000 an ounce for the first time, extending a powerful annual advance driven by a sustained global deficit.
Palladium has gained 57% this year, with market watchers saying the shortfall will be hard to fill. That’s great news for producers of the metal, used mainly in autocatalysts, which have seen their shares surge.
No. 1 miner has gained 51% in 2019. The effect has been even more dramatic for South African platinum producers, which dig up palladium alongside their primary metal. The FTSE/JSE Africa Platinum Mining Index has tripled this year, the biggest-ever annual gain.
On the other hand, higher prices don’t affect carmakers too much, because palladium is only a small part of the overall production cost, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.
Spot palladium climbed as much as 1.1% to $2,000.35 an ounce, before paring gains to trade little changed at $1,976.68 at 6:49 a.m. in New York.
Other precious metals edged higher Tuesday, with spot gold adding 0.2% to $1,479.31 an ounce.
Source : Bloomberg