Palladium hits record highs

London (July 23)  Palladium will reach its highest yearly price on record this year and could top that next year as expectations for lower South African output combine with a recovery in demand, as car sales rise in the US and  China  , and doubts over Russian supply, a Reuters poll shows.

Palladium, which has averaged  $777  (R8 262) an ounce in the first half, is expected to average  $805.50  an ounce in the full year, up more than 10 percent from 2013 and its highest since Reuters data began in 1984, a survey of 31 analysts and traders showed. Next year it is expected to extend that average to  $875  .

The metal, chiefly used as a component in car catalytic converters, is forecast to average  $860  an ounce in the fourth quarter, its best quarterly performance since the first three months of 2001.

A drop in South African production after a five-month strike is expected to help push the market balance for platinum further into deficit. - Reuters

Source: KitcoNews