FX.co ★ Palladium rally continues on supply shortage

Palladium is rapidly gaining ground for the second straight year, and there is little sign of the rally slowing as global supply tightens. The acute supply shortage of precious metal is one of the main drivers pushing palladium prices higher. Over the year, palladium spot prices have reached their record highs several times. Today, the price is approaching $2,000 per ounce and is currently fluctuating near the level of $1,914.20. Notably, a move above $1,900 an ounce was recorded for the first time in market history. At the moment, the upward trend is likely to continue as the metal is still in high demand in the automobile industry and the supply remains limited. In the short term, analysts predict the metal prices to increase even more. Experts at UBS express worries about the future of palladium supply. It is hard to tell now where the market will get more metal amid a continuing shortage. At the same time, there is a likelihood of excessive market growth and a sharp correction during risk aversion, especially in the context of trade tensions and a slowdown in global economic growth.