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Palladium Hits Record High, Gold Up as Central Banks Wary Of Dollar

Metal News - Published on Thu, 21 Feb 2019

Image Source: Sputnik International
Sputnik reported that Palladium turns out to have benefited from a switch away from wildly popular diesel engines and positive expectations about the nascent hybrid car market, with vehicles in question equally consuming electricity and petrol. Palladium hit a record high on January 19, moving close to USD 1,500 per ounce, as it has been in low supply for quite some time.

According to automotive catalyst manufacturer Johnson Matthey, quoted by Reuters, the palladium supply deficit, with the metal being 1.5% at USD 1,479.49 as of 19 February, will widen this year in light of stricter emissions regulations increasing demand slowly but surely for catalytic converters.

Mr Philip Newman, director at Metals Focus said that “The palladium market is facing a substantially growing physical deficit… driven more from the demand side due to rising automotive demand, adding that palladium won’t be substituted with platinum in catalysts, since “it is very difficult to achieve and takes a very long time to make sure it is compliant.”

Unlike platinum, palladium has cashed in on the shift away from diesel engines and positive expectations regarding the development of hybrid vehicles, as most of them are partly petrol-powered. This has helped to insulate palladium from the effects of the shrinking car market.

Mr Newman said that “It’s very difficult to predict in a market that is very small, but we are nearing the USD 1,500 level, and reaching it is very likely as tightness in the market, along with the dollar weakness, is providing some lift.”

Source :

Posted By : Rabi Wangkhem on Thu, 21 Feb 2019
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