Palladium prices have been soaring, with the Aberdeen Standard Phys PalladiumShares ETF up 23% year-to-date and 44.8% over the past year. This marks the seventh consecutive month of price growth for the precious metal, which has tripled in value since January 2016.
The surge in palladium prices can be attributed to a combination of factors including increasing global demand, stagnant supply, and a recent strike threat in South African mining industry. The automotive industry has been a major driver of palladium demand, particularly for catalytic converters in petrol-fueled cars.
However, while the future of palladium looks promising with Citigroup predicting a further 6% price increase, some analysts are wary of the metal’s rapid rise. Market uncertainties in Europe and North America, along with the growing popularity of electric vehicles, could potentially impact palladium demand and prices in the future.
On the other hand, gold prices have also been on the rise due to heightened market volatility and a dovish stance from the Federal Reserve. The SPDR Gold Shares ETF is up 3.4% this year, driven by increased investment in the precious metal.
Ultimately, the future of both palladium and gold hinges on global economic conditions and market dynamics. While palladium may see continued growth if supply constraints persist, a resolution to trade tensions could boost gold prices. Investors will be closely monitoring these trends to make informed decisions on their investment strategies.
