Palladium continues to make new highs

Palladium today passed over $ 1,500 an ounce, setting a new record. So the powerful metal rally continues with full force and is driven by the heavy supply shortage of the metal. Car makers just try to "catch up" with every possible available ounce to meet the new heavy emissions requirements.

With today's growth of 1.7% to $ 1505.47 per ounce, the price is on track to record another month's growth, reaching the seventh straight. The advancement of the price will benefit suppliers in Russia and South Africa.

The price of precious metal has tripled since January 2016. Citigroup predicted last month that more precious metals are ahead, warning that only a shock in demand will balance the market. The bank predicts that the price could reach $ 1600. This year, a large world deficit is expected from the restructuring of companies to stop the production of diesel cars.

However, some analysts question the endurance of the rally. Car sales in China continued to decline in January. In addition, services such as renting cars in the US and Europe make it unnecessary to own a car that shrinks the market.

Source: Bloomberg Finance L.P.

Graph: Used with permission of Bloomberg Finance L.P.

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