New metal on the block: gold loses ‘most precious’ status
Palladium soars on rising sales of petrol cars
Palladium: a silvery metal used in car catalysts Photograph: iStock
Gold has lost its status as the most valuable precious metal to palladium.
Palladium surged to a high of $1,251 (€1,101) an ounce on Wednesday, surpassing the price of gold for the first time since October 2002.
The silvery metal, which is used in car catalysts, has been one of the best performing commodities this year due to rising sales of petrol cars and a switch away from diesel in Europe.
In addition, analysts expect an increased use of palladium in autocatalysts in China, which is adopting stricter Euro 6 emissions standards by 2020.
Supply and demand
At the same time, supply of palladium from mines in Russia and South Africa is set to lag demand. The market is set to be in “a substantial deficit this year and for the foreseeable future,” according to consultancy Metals Focus.
Gold last traded at $1,236 a troy ounce. – Copyright The Financial Times Limited 2018