Palladium broke the $ 3,000 an ounce mark for the first time on Friday, spurred by persistent concerns over a supply shortage of the metal used primarily in the automotive industry’s emission controls.
Palladium was – in the latest trading -, up 1% to $ 2984.68 an ounce, after reaching its highest level ever at $ 3007.73 today. He is on his way to post a monthly profit as well. Read also Palladium, the conqueror of gold, continues its record journey He removed gold from the throne of rare metals .. What do you know about palladium?Gold and precious metals … all you need to know to invest in them10 facts about gold
The demand for palladium is constantly rising by the auto industry and is expected to rise further in light of the decline in the supply of this metal.
But Carsten Fritsch, an analyst at Commerzbank, said it was unlikely that prices would continue to rise above $ 3,000, with the possibility that replacing it would lead to lower prices as the year passes.
“At this level, more car manufacturers will consider replacing palladium with platinum,” he said.
And the switch to electric cars may eventually dissipate the demand for palladium. Tightening environmental regulations have forced carmakers to use more palladium in their gasoline engines in recent years.
Meanwhile, spot gold fell 0.2% to $ 1769 an ounce by 09:10 GMT.
And settled US gold futures at 1769 dollars an ounce. Advertising
Data late on Thursday showed that US economic growth accelerated in the first quarter of this year.
Separately, a report from the US Labor Department showed a decrease in the number of first-time applicants for unemployment benefits.
Silver fell 0.5% to $ 25.96 an ounce, but it is heading to achieve a monthly increase of more than 6%, the largest since last December.
In contrast, platinum rose 0.7% to $ 1206.
Uses of palladium
Palladium is mainly used in the automotive industry to purify it from environmental pollutants. And the price of this precious metal was boosted in light of insufficient global supply to meet demand, especially with consumers’ tendency to gasoline-powered cars instead of diesel-powered cars.
This rare mineral is also used in the electronics industry, in dentistry, hydrogen purification, jewelry and catalytic converters.
Palladium has also found support from research by auto companies on cutting emissions and reducing carbon dioxide emissions.
Russia, South Africa, Canada, the United States and Zimbabwe are the top 5 palladium-producing countries in the world.