NEW YORK: Palladium prices hit a two-year high on Monday, with physical buying due to strong industrial and investment demand also boosting sister metal platinum to its highest level since August 2008.
A lower dollar against major currencies amid higher risk appetite also bolstered asset classes across the board from equities to gold and crude oil, which rose above $86 a barrel. Sharp inflows into the first US platinum and palladium exchange-traded funds and optimism about the auto industry’s recovery have spurred buying of platinum group metals.
“There is strong investment demand in the US because of the platinum and palladium ETFs, and the recovery in the auto sector, particularly in the very strong developing markets, such as China, has led to a pick-up in demand,” said Carlos Sanchez, precious metals analyst at commodities consultancy CPM Group. Palladium, used largely in the auto industry for catalytic converters, rose to $496.50 an ounce, its strongest price since March 2008. It was at $495 an ounce at 10:52 a.m. EDT (1452GMT), up from $490 late in New York in the previous session.
