Spot Palladium At 13.5-year High
London (July 8) The spot price of palladium climbed to its highest level in 13-and-a-half years Tuesday as a strong supply-demand dynamic continued to underpin the metal.
Firm demand from auto makers in 2014 has met limited supplies from Russia and South Africa, the two leading producers of the metal. Nearly 70% of palladium is used in catalytic converters for gasoline-powered vehicles that are driven in the buoyant auto markets of the U.S. and China.
Palladium ticked up to hit $871.40 per troy ounce, its highest since February 2001. The metal has staged a gradual rally since the start of the year, gaining 22% from around $713 an ounce at the end of 2013.
Elsewhere, spot platinum traded flat on the day at $1,489.75 an ounce, spot gold fell 0.1% to $1,318.62 an ounce and silver edged sideways to $21.020 an ounce.
"After the strong rally in gold and silver and the price swings in platinum metals in June, some consolidation is quite justified here," UBS precious metals strategist Edel Tully said in a note to clients.
"For gold, apart from the continued focus on macroeconomic factors, seasonality is also likely to come into play during this quarter -- but uncertainty surrounding gold policy in India as well as weak monsoon risks could affect traditional seasonal patterns."