Palladium jumps to all-time high above $1,570

Monday, 18. March 2019 13:19

Precious metals advanced on Monday, where palladium, the only one which posted a gain last year, spiked to a record $1,571.14 per ounce. 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 is mostly utilized in the manufacturing of catalytic converters for gasoline-powered systems and hybrids. Russia, the biggest supplier, has said last week that it is considering a six-month export ban for scrap and tailings of precious metals.

Stocks on Wall Street were mostly higher in premarket trading, which is normally negatively correlated with gold and the rest of the asset class. But the current price movements may indicate caution over inflation as the United States Federal Reserve is widely seen downgrading its outlook for interest rates. Markets even price in a moderate probability of a cut in borrowing costs by the end of the year, which may underpin spending and prices.

Gold added only 0.22% to trade for $1,304.86 per troy ounce at 1:19 pm CET. Silver climbed 0.46% to $15.36. Platinum was 0.62% in the green at $837.11 for one fine ounce. Palladium traded 0.8% in positive territory, at $1,566.1. It had seven days with all-time highs in January and another six last month, with the last one registered on February 27.

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