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General Market Commentary
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General Market Commentary
Palladium Is Now More Expensive Than Gold Has Ever Been
Palladium rose for a 15th day, heading for its longest run of gains on record and exceeding the highest-ever price of gold.
Spot palladium touched a record of $1,940.34 an ounce Thursday, extending its year-to-date gains to 54%. Prices have been driven by supply concerns as mines in South Africa, the world’s No. 2 palladium producer, were shut down for 24 hours this week because of electricity shortages. State power utility Eskom Holdings SOC Ltd. is still implementing rolling blackouts, although at a lower level.
“It seems that nothing can slow palladium,” said Daniel Briesemann, a Commerzbank AG analyst. “Even though we regard the steep price rise as exaggerated, there is no end in sight to the rally.”
Palladium’s gains on Thursday propelled it past gold’s 2011 record of $1,921.17 an ounce.
There’s a good chance that palladium will touch $2,020 before 2020, said Jonathan Butler, precious metals strategist at Mitsubishi Corp U.K. Plc.
“South African electricity supply concerns have helped palladium this week, together with still strong physical demand,” he said.