Palladium – the only precious metal to have posted a gain in the year to date – has traded in a relatively narrow range at around US$740 per troy oz in recent weeks. However, a substantial supply deficit is forecast to boost its price over the next year.
Lingering labour disputes at South African mines continue to disrupt production, while sales from Russian stockpiles have plunged. Booming car sales in North America, a key consumer of palladium, should support demand for the metal, which is used mainly in autocatalytic converters.
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