According to expert estimates, palladium quotes increased to record levels amid growing industrial demand for this metal.The December palladium futures on the New York Mercantile Exchange reached $ 1137.40 per troy ounce by the close of trading on Thursday, November 15. According to the calculations of FactSet, this figure for this precious metal is the highest since November 1984.According to most experts, increased demand and limited metal supply are considered key factors in the growth of palladium value. According to George Jero, managing director of RBC Wealth Management, the high demand for this metal is recorded in the production of electric vehicles, as well as diesel engines in Europe and China. At the same time, the palladium supply remains lower than expected.
According to Michael Jones, Chief Executive Officer of Platinum Group Metals, the current situation with palladium is affected by the fact that the metal supply on the market demonstrates multidirectional dynamics. He emphasizes that palladium is often a by-product of the production of platinum or nickel, so experts do not expect a rapid increase in supply in response to growing demand.Last month, analysts noted among the reasons for the rally in palladium prices, serious concerns of market participants about US sanctions against Russian companies. In many ways, this was facilitated by the forecasts of Norilsk Nickel, the world's largest producer of this metal. The company announced a further reduction in the production of palladium in the coming year.
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