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Palladium Smashes Record Again

The coronavirus is still stimulating demand for safe-haven assets. It includes precious metals, and palladium rises to a new record.

This rare silvery-white metal is now the most valuable of the four primary precious metals. The main use of palladium is in catalytic converters in car exhaust systems. It has the power to convert as much as 90% of the harmful gases into less noxious substances. The material is also used in electronics, medicine, dentistry, jewelry, hydrogen purification, chemical applications, and groundwater treatment.

In the last 100 days, palladium volumes more than six times the average

The rebound in metals accelerated around 10 am when gold advanced over the US $1,600 per ounce. In the last 100 days, palladium volumes grew more than six times the average. According to data, palladium delivered a return of 77% over the past year, the highest among 45 raw materials in the DCI BNP Paribas (BNPP) Enhanced index.

Edward Meir, an analyst at ED&F Man Capital Markets, says palladium has been amazing. Their actions are like the Tesla of raw materials. Prices are sticking to the rebound in precious metals. Each time these metals recover, palladium also tends to move, but in greater magnitude.

Palladium futures for March delivery rose 7.5% to the US $ 2,489.70 an ounce at 11:45 am on the New York Mercantile Exchange, after reaching the US $ 2,498.20, the highest figure in the records for three decades. In the spot market, the metal reached a record high of US $ 2,589.

Gold futures rose 1.3% to the US $ 1,607.50 per ounce at Comex in New York. The count of pending contracts for the metal exceeded more than 30 times the magnitude of palladium.

 

 

Coronavirus Outbreak Weighs on Metal Prices

Since China has set environmental standards, there have been expectations in the market that it would stimulate higher loads of material in cars. The global supply of palladium is already struggling to meet its demand.

Also, coronavirus has significantly affected Apple Inc. The latest news on the iPhone caused the fall of shares. The smartphone manufacturer said Coronavirus would cut down the production.

Demand has also slowed down because retail stores are closed, or they are operating with reduced hours. The news sent investors to the safety of precious metals, including gold and palladium.

Production will be less than consumption by about 1.9 million ounces this year, a more towering figure than the 1.1-million-ounce deficit last year, Anglo-American Platinum chief executive Chris Griffith said in a presentation.

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