Is Palladium starting to play catch-up?
Palladium, the worst performing precious metal this year, has started to play catch-up to its peers. This after acting more as an industrial metal and following overall market trends instead of trends in precious metals.
The metal fell more than 17 per cent to a five-year low of around $470/oz in early January, when data showed that Chinese car sales increased at the slowest pace in three years. The main use of palladium in China, the biggest consumer of the metal, is in the fabrication of autocatalytic converters which reduce harmful emissions. Since January, investor sentiment has improved and with current spot prices around the $575/oz mark, palladium is up more than 2 per cent year-to-date while gold, silver and platinum are up 18.7 per cent, 13.3 per cent and 8 per cent respectively.