Palladium drops over 15% in two days

Thursday, 28. March 2019 18:03

Precious metals deepened losses on Thursday as palladium reached a record $1.614.63 a week ago after Russia, the biggest supplier, said it is considering a six-month export ban for scrap and tailings of precious metals. Palladium's demand growth has overtaken production for seven years in a row, with no sign of a letdown. It is mostly utilized in filtering systems for greenhouse gases in gasoline-powered systems and hybrid cars. Anglo American's chief executive Mark Cutifani yesterday claimed palladium's surge was "a bubble."

Meanwhile, the decline on Wall Street was halted and Treasury yields turned higher. Investors were on the lookout for developments as another round of bilateral trade talks between the United States and China was underway and the Brexit stalemate continued. Economic growth in the US in the fourth quarter came in at 2.2% or 0.4 percentage points lower than in the initial estimate. Palladium was particularly affected, dropping to as low as $1,336.24 per ounce, a level last seen on January 16.

Gold fell 1.42% to $1,291.16 for one troy ounce. It touched a 20-day low at $1,288.65. Silver plunged 1.88% to $15.01, eyeing a year-to-date low, and platinum was down 1.44% at $841.24. Palladium traded 7.55% in the red at $1,342.86 per ounce.

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