Sunday , May 22 2022

The palace is heading for parity with gold for the first time in the last 16 years. Analysts Announce Record Quotes – News by Source


The paladium is growing faster than other precious metals, reaching a parity with gold for the first time in the last 16 years, Reuters reports.

Limited deliveries, high deficits, and increased interest from speculative investors led to a 40% increase in palladium prices over the past three months. The price of this metal, mainly used for the production of vehicle catalysts, reached a record high of $ 1,185.40 an ounce on Friday, with only $ 35 under $ 1,220 for one ounce of gold.

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"What we see is the culmination of several years of sustained deficits. $ 1,200 is the next psychological breakthrough." I expect to head for $ 1,300, "said Jonathan Butler, an analyst at Mitsubishi.

In turn, analysts at Citibank are of the opinion that the situation on the physical market of palladium is one of the most difficult of the past two decades.

Car maker Johnson Matthey expects a deficit of 239,000 ounces this year, while GFMS analysts forecast a deficit of over one million ounces in each of the next three years on a palladium market estimated at 10 million of ounces per year.

Palladium prices have risen this year despite falling car sales in China, the world's largest automotive market, and stagnation in US sales, the world's second largest market. The automotive industry is responsible for 80% of the demand for palladium.

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But the arguments for a growing palladium market are supported by the transition of European carmakers to gasoline cars following the dieselgate scandal, which may require large amounts of palladium for the construction of catalysts.

This adds to the fact that palladium stocks are decreasing. Stocks monitored by Nymex are 46,965 ounces, the lowest level since 2003. Also, ETF funded palladium stocks fell below 800,000 ounces from 2.6 million ounces in 2015.

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