On Friday, the 20th of September 2019, precious metal palladium rocketed to an all-time-high record closure, as producers seemed to be piling up stocks in context of a persistent output lag, meanwhile, another precious metal spot gold posted a weekly gain of 1.5 per cent as growing grudges in the Middle East diminished risk-appetite and buoyed up demands of safe-haven assets likes of spot gold.
On Friday’s (September 20th) market wrap-up, palladium rounded off the day 0.9 per cent higher to $1,637.13 per ounce after touching a record all-time-high of $1,654, while the precious metal posted a weekly surge of 2 per cent, remarking its seventh consecutive week of gains.
More critically, Palladium prices soared more than 30 per cent so far this year, as a sustained supply crunch seemed to have boosted up investors’ confidence by a significant margin. Meanwhile, safe-haven asset, spot gold added 0.6 per cent to wind down Friday’s (September 20th) market at $1,508.63 per ounce, reporting a 1.5 per cent weekly gain, while US gold futures ended the day 0.6 per cent higher to $1,515.10.
Aside from that, referring to a lack of liquidity in the metal markets, a head of base and precious metals derivatives at BMO, Tai Wong said on Friday’s (September 20th) market round off, “Modest producer hedging and speculative interest in an extremely illiquid market has driven borrowing costs in the metal sharply higher.
Last Friday it cost perhaps a percent to borrow for a month, today it has been borrowed at 5%. The market has been and remains in fundamental deficit, so conditions are likely to remain tight for some time. ”