Palladium rallies on shortage in car market

Wednesday, 02. January 2019 07:25

Spot prices of precious metals showed a mixed bag on Wednesday, even though a drop in stock markets like in the current session in Asia-Pacific normally pushes investors toward the asset class believed to be safer in times of turbulence. However, palladium, which is the only one to post a gain last year, jumped to reach $1,266.02 per ounce, an all-time record.

The most valuable of the four, it surpassed gold in 2018 on the back of strong demand in the automotive industry. It has overtaken production for seven years in a row, with no sign of a letdown. Palladium, which traded 2.39% in the green at 7:03 am CET and sold for $1,265.96 per ounce, is mostly utilized in the manufacturing of catalytic converters for gasoline-powered systems.

Its spread against platinum is aiming at new all-time highs. The sister metal was 0.18% higher at $795.74 at 7:21 am CET. Gold advanced 0.29% to $1,285.29 per ounce and silver slipped 0.07% to $15.46 for one troy ounce.

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