Palladium’s hot rally may be coming to an end
LONDON: Palladium has been one of the hottest commodities for a while now, but analysts think this year may be the time to book profits.
Prices have rallied to fresh records on tighter supplies of the material mainly used in gasoline vehicle autocatalysts. But analysts surveyed by Bloomberg see the metal ending the year 15 percent lower than now, partly as shortages are priced in and car sales in key markets slow.
Prices have jumped in recent years as autocatalyst manufacturers scrambled to get hold of the metal to meet more stringent emissions controls, particularly in China. That’s also helped fuel even bigger gains in lesser known sister metal, rhodium. For palladium, scarce supplies have created a lucrative business where investors lease out metal from exchange-traded funds to meet demand.
“Palladium is the most overrated precious metal,” said Georgette Boele, co-coordinator of FX and precious metals strategy at ABN Amro Bank NV.
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