On Friday, the 17th of January 2020, a flurry of industrial metals across the boards of the commodity markets all over the globe posted solid gains as a “Phase 1” US-China trade agreement signing off ceremony this week alongside a number of solid economic data shredding off slowdown concerns had added to investors’ appetite.
On top of that, apart from optimisms stemmed off an improved global economic outlook a chronic supply shortage for some industry grade metals such as Palladium and silver appeared to have catalysed Friday’s (January 17th) rally for the industry grade metals, while Palladium, widely used in the exhaust filtrations of automotive devices, climbed more than 9 per cent, breaking above $2,500 an ounce for the first time on record and silver gained 0.7 per cent to wrap up the day at $18.07 an ounce.
Aside from that, a Thursday (January 16th) data from the Government of South Africa, the largest Palladium producer across the globe with a market share of 40 per cent, showing the nation’s November Palladium output nosediving more that 13.5 per cent, had also played its part on Friday’s (January 17th) extension of a record-setting palladium rally.
Meanwhile, as Palladium has scored its best weekly gain since December 2001 with a rise of 16 per cent amid a persistent supply shortage, a commodity markets expert at TD securities, Ryan McKay said, “This is a structural shortage in the market that has been brewing for years and we do not expect to see any oversupply on the horizon that will curb that deficit.
” Among other precious metals, Platinum gained 1.8 per cent to $1022.10 per ounce after hitting its highest level in 23 months to $1041.05 on Friday (January 17th), while US gold futures’ prices rose 0.6 per cent to $1560.30 an ounce.