Polladium is going to get $900 more expensive than gold

1 minute
Polladium is going to get $900 more expensive than gold

Metal Worth More Than Gold Is Set to Get Even More Expensive

Palladium's surge has given it the title of the most important of the major precious metals, and its gap over gold may broaden as demand pushes prices.

The metal used in catalytic converters hit an all-time high of more than $ 3,018 an ounce in May, even as its rally over the past month cooled, is still more than $900 more expensive than the bullion. The spread between the two increased to the widest in February last year since its record in February and may continue to expand as the global economic recovery increases demand.

The Arctic Palladium market is expected to be in deficit after the rebound of the automotive industry, tougher pollution controls and an unexpected tightening of supply have been declared that flooding at its global mines will curb production. It's a different prospect for gold - which is little changed this year compared to a 15% increase in palladium.

Gold is expected to weaken at year-end and could fall to $1,700 an ounce due to a strengthening U.S. dollar and rising real yields, said Georgette Boele, senior precious metals analyst at ABN Amro.

More stories like this are available at bloomberg.com.

  • Comments
Loading comments...