On Tuesday, palladium futures’ prices leapfrogged to a record high over frets of strained supplies amid growing demand in automotive industry, while the precious yellow metal gold futures gobbled down as much as 1 per cent in losses following a remark from US Treasury Secretary Janet Yellen underscoring a plausible rate hike in a near term.
In factuality, demands of palladium, an industrial metal widely used as a catalytic converter or a toolkit to suppress emission of harmful pollutants, soared rapidly over recent years as a number of major economies in EU and N.
America had ramped up efforts to curb emissions as part of a broader push to prevent climate change impacts, while investors’ frets over a probable supply chain disruption in the precious industrial metal had stepped up its demands.
Meanwhile, addressing to a slew of stiffer pollution control measures across the globe which would more likely to drive palladium futures’ prices higher over upcoming months, a head of commodity strategist at TD Securities, Bart Melek said, “There are stricter pollution controls globally that we’ve not seen in the past, which means vehicles that were not previously required to use auto-catalysts will now have to, and hence more demand.
For the foreseeable future, the market will be in physical deficit and prices will go higher. ” Besides, spot gold prices shrugged off more than 1 per cent after US Treasury Secretary Janet Yellen had been quoted saying that the interest rates may be lifted gradually, sending shockwave into global money markets and tottering Wall St.
while helping regain the US Dollar’s safe-haven bid.
Palladium hits record as gold falls over 1% after Yellen’s rate-hike remark
Citing statistics, in the day’s commodity market closure, spot palladium futures’ prices gained 0.2 per cent to $2,976.90 an ounce after hitting a record high of $3,017.18 earlier in the session.
Besides, spot gold futures tumbled nearly 1 per cent to $1,776.73 an ounce, while US gold contracts ended 0.9 per cent lower to $1,776. In the thick of other safe-haven metals, silver futures’ fell 1.8 per cent to $26.40 an ounce and platinum edged 0.2 per cent lower to $1,227.73 per ounce shortly after the remarks from US Treasury’s Janet Yellen.