Gold now has a challenger for the mantle of most-precious metal | Fin24
 
  • Surprised?

    Does Johann Rupert still define South African capitalism? Not really, says Ferial Haffajee.

  • Double Whammy

    Gordhan's top 10 quotes from a frank media briefing about what's plaguing Eskom.

  • Load shedding schedules

    Find links to load shedding schedules for major municipalities here.

Loading...

Gold now has a challenger for the mantle of most-precious metal

Dec 01 2018 06:45
Marvin G. Perez, Bloomberg

The scramble for palladium supply has taken the precious metal within striking distance to its costliest cousin - gold.

Palladium, used as an autocatalyst in gasoline-fueled vehicles, climbed to a record for a fourth time this month as users of the precious metal compete for limited supply. Investors continue to pull the commodity from exchange-traded funds, taking holdings to the smallest in almost a decade. The cost to borrow the raw material for a month climbed to more than triple the yield on 10-year Treasuries.

“This is a very tight market, there’s not enough supply for the number of buyers right now,” Daniel Ghali, strategist at TD Securities in Toronto, said in a telephone interview. “As tight as it is, it takes very little to move this market” because of the thin volume traded, he said.

Palladium for immediate delivery climbed as much as 1.8% to a record $1 204.71 an ounce, before trading at $1 180.78 at 13:47 in New York, according to Bloomberg pricing. With spot gold trading at $1 220.88, an ounce of the yellow metal now buys just about 1.03 ounces of palladium, the least since 2002.

In the futures market, palladium for March delivery fell 0.6% to settle at $1 144.60 an ounce on the New York Mercantile Exchange. Gold for February delivery closed 0.4% lower at $1 226 an ounce on the Comex, with dollar strength exerting downward pressure on the commodities.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter and Facebook. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

sa economy  |  gold  |  palladium
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Can the SABC avoid retrenching staff?

Previous results · Suggest a vote

Loading...