Palladium Recent 'Stalwart' Among Precious Metals
New York (Mar 26) A Perfect Storm has been brewing for palladium this month,” pushing the premium for sponge (metal in powder form) to $8 last week, says UBS. Palladium has been underpinned by the planned start of two exchange-traded funds in South Africa this week, a strike against producers of platinum group metals in the country and worries about potential trade sanctions against Russia. “With demand for palladium sponge and ingot high right now, premiums should only rise and so too could lease rates,” UBS says. “And if no resolution is found in SA in the next few weeks, we think metal tightness will only intensify if producers are forced to source metal in the market. April could be a very interesting month for palladium, and platinum also.” Spot palladium peaked at $800.20 an ounce overnight, its strongest level since August 2011.