Palladium eyes $1,200 on limitations in supply

Friday, 30. November 2018 12:57

While spot prices of gold, silver and platinum were in negative territory on Friday on dovish hints from the central bank of the United States and the dollar's slight gains, palladium hit $1,195.7 per ounce. Record highs have been reached in six trading sessions in as many weeks.

The precious metal, primarily used in catalytic converters for gasoline-powered cars, has benefited from initiatives by European governments to curb the use of diesel-based technology, where platinum is dominant. Supply has lagged demand for eight years, while tensions between the administration of President Donald Trump and Russia, which is by far the biggest producer, sparked additional fears for market balance.

The fall in oil prices has eased concern that inflation would get out of hand and the Federal Reserve seems to lean toward a slowdown of interest rate increases, which may help the economy and underpins risk appetite. Gold, a safe haven asset, slipped 0.12% to $1,222.56 per ounce at 12:55 pm CET. Silver was 0.37% in the red at $14.26 and platinum dropped 1.13% to $810.2. Palladium advanced 0.98% to $1,195.27 per ounce.

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