Gulf News

Pal­la­dium tops gold as de­mand fu­els rally

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Gold just got left be­hind by one of its sis­ter me­tals. Af­ter a de­mand-fu­elled rally over the past four months that’s seen prices hit a record high, pal­la­dium topped gold.

Pal­la­dium, which hasn’t traded at a sus­tained premium to gold in 16 years, has gained as buy­ers scram­ble for sup­plies of the metal used in ve­hi­cle smog-con­trol de­vices.

De­mand has risen as con­sumers turn away from diesel to­ward gaso­line-pow­ered cars, which tend to use more pal­la­dium in au­to­cat­a­lysts.

“Peo­ple are grasp­ing for what­ever ounces of ma­te­rial they can get” in the pal­la­dium mar­ket, Tai Wong, head of base and pre­cious me­tals trad­ing at BMO Cap­i­tal Mar­kets, said be­fore yes­ter­day’s lev­els were hit.

“It’s very ex­pen­sive to bor­row, and that is per­haps the big­gest fac­tor driv­ing the spot price higher.”

Pal­la­dium for im­me­di­ate de­liv­ery climbed as much as 1.9 per cent to a peak of $1,255.83 an ounce, and was at $1,245.67 at 11.17am in Lon­don, ac­cord­ing to Bloomberg pric­ing.

Spot gold was 0.1 per cent lower at $1,237.34 an ounce.

Pal­la­dium’s deficit is set to widen to about 1.4 mil­lion ounces in 2019, adding to a short­fall of 1.2 mil­lion ounces this year, ac­cord­ing to Lon­don-based Me­tals Fo­cus Ltd.

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