Palladium tops $1,600 per ounce for first time

Tuesday, 19. March 2019 10:01

Palladium outpaced the rise in other precious metals on Tuesday, surging 1.43% at 9:58 am CET to touch a record $1,601.36 for one troy 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.

The United States Federal Reserve is due to publish an update to its monetary policy measures and economic outlook. Markets have priced in a moderate chance of an interest rate cut this year, which could underpin spending and consumer prices. Precious metals are the most conventional shield against inflation.

Gold was off the earlier high of $1,307.93, the strongest point since March 14, and traded 0.18% in the green at $1,305.84 per ounce. Silver moved just 0.2% up to $15.38. Palladium's sister metal platinum advanced 0.57% to $841.04 per ounce right after following a climb to $841.27, a level also last seen five days before.

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