Palladium declines 5% as the dollar gains ground amid expectations of weak demand

Economies.com

1 day ago

Palladium prices fell on Tuesday as the dollar gained ground against most major rivals, while analysts expect demand on platinum and palladium to decline next year. 

A Reuters survey showed that analysts expect platinum and palladium prices to decline in 2024 as automotive production slows down.

Both metals are used in the car industry to reduce exhaust fumes, while platinum is additionally used in other industries and as a precious metal.

Average opinions expect platinum to fall to $1,023 an ounce in 2023, down from $1100 in earlier surveys.

Platinum is down 14% so far this year after a spike in April and May due to supply disruptions in South Africa.

A dip in automotive production, especially in the US, hurt platinum demand.

As for palladium, the Reuters survey expects the price to average $1,250 an ounce in 2024, down from $1,369 in previous surveys.

Palladium tumbled 40% so far this year, hitting five-week lows at $1,083.

Otherwise, the dollar index rose 0.4% as of 15:54 GMT to 105.6, with a session-high at 105.7, and a low at 105.2.

Palladium December futures fell 4.8% as of 15:55 GMT to $1,061.5 an ounce. 

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