Commodity Blog

Palladium rose amidst a medium-sized decline in almost all other commodity markets today. The metal gained on expectation that its market will turn to boom later this year as the existing surplus will be replaced with shortage in a cycle.

The Barclays Capital analysts signal improved long-term outlook for palladium. Despite forecasting a better situation in gold for the short-term period, the industrial metal is currently outperforming the precious one. Palladium can boast more than 5 percent gain since April 10 compared to a less than 1 percent drop in gold.

Although palladium is under pressure from the car industry troubles and was affected badly by the excess stockpiles hoarded in Russia, it is going to benefit, and is probably already benefiting, from the shortage expected after the stockpiles are sold out. The production was cut significantly.

Palladium spot price went up from $654.50 to $660.25 for one troy ounce as of 17:09 GMT. Earlier, it has reached $665.96/oz — a new record high level since March 27.

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