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During the Thursday auction, analysts said that the price of palladium successfully updated the previous record, reaching $1,490.95. Earlier, the cost of the precious metal rose to $1,506.25 on Wednesday.
For the first time in the entire history of observations on the dynamics of the price of palladium, its value exceeded $1,500, according to experts of the precious metals market. Moreover, analysts deemed palladium to be surely demonstrating a rise in price for the seventh time in a row considering the results of February 2019.
Experts consider the deficit in the global market to be the key driver of the increase in the price of precious metals. According to UBS experts, the demand for palladium exceeds its supply for eight consecutive years and a survey from Citibank shows that the deficit of this precious metal was 600,000 ounces last year.
Another important reason for the rise in the price of palladium is the diesel scandal in the United States and Germany, which occurred three years ago. Recall that palladium is mainly used in gasoline engines, and the automotive industry consumes 80% of global demand. In such a situation, the volume of cars sales with gasoline engines began to increase while the diesel engines are in a decline.
Restricting the requirements for the level of harmful emissions, which include the exhaust gases of cars, leads to an increase in demand for cars with petrol engines. In this regard, the demand for palladium will persist for a long time, as experts predicted. They do not exclude an increase in the value of precious metals to $1600.
Last month on January 17, 2019, palladium exceeded $ 1,400 per ounce, reaching $ 1,439.29 for the first time in its entire history. In December 2018, the cost of precious metals for the first time in 16 years was higher than gold quotes. At that time, palladium reached a record level of $1,236.48 per 1 ounce and the yellow metal traded at around $ 1,235.37 per 1 ounce.
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