The price of palladium, a metal used in petrol car catalysts, touched a record level above $1,200 a troy ounce on Friday, putting it within striking distance of the price of gold.
Palladium has been one of the best performing commodities this year due to rising sales of petrol cars and a switch away from diesel in Europe.
In addition, analysts expect an increased use of palladium in autocatalysts in China, which is adopting stricter Euro 6 emissions standards by 2020.
At the same time, supply of palladium from mines in Russia and South Africa is set to lag demand. The market is set to be in “a substantial deficit this year and for the foreseeable future,” according to consultancy Metals Focus.
Palladium last traded at $1,178 an ounce, after touching $1,202.81 an ounce earlier on Friday. Gold last traded at $1,220.5 an ounce.
Source: Financial Times
