Palladium Prices at Their Highest in More Than Five Weeks
November 15 2016 - 3:20PM
Dow Jones News
By Ira Iosebashvili
Palladium prices on Tuesday rose to their highest in more than
five weeks, bolstered by hopes of stronger auto sales in the
U.S.
Palladium for December delivery closed up 1.2% at $705.95 a troy
ounce, its highest settlement since October 3. Prices are up 14%
this month.
Driving the rally were hopes that U.S. car sales would rise in
coming months, boosting demand for the metal, which is used to
scrub emissions from gasoline engines.
Metals such as copper and zinc have rallied in recent weeks on
improving U.S. economic data and expectations of increased fiscal
spending under a new presidential administration. While classified
as a precious metal, palladium's industrial uses make it popular
with investors looking to bet on a rising economy.
The palladium market will post a deficit of 651,000 troy ounces
this year and another shortfall in 2017 thanks to rising
autocatalyst demand, HSBC said, citing a report from metals trader
Johnson Matthey PLC.
In other precious metals, gold for December delivery pared gains
and closed up 0.2% at $1,224.50 a troy ounce. Expectations that the
Federal Reserve will raise interest rates next month have dented
the metal, which struggles to compete with yield-bearing
investments when rates rise.
Investors have also left gold for assets that have enjoyed big
rallies in recent weeks, such as base metals or stocks, said Ira
Epstein, a strategist at the Linn Group.
"People are questioning why they are owning gold in a scenario
where everything else is moving higher," Mr. Epstein said.
Gold prices are down nearly 4% this month.
December silver was up 0.9% at $17.04 a troy ounce. Platinum for
January delivery was up 0.1% at $934.70 a troy ounce.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
November 15, 2016 15:05 ET (20:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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