Lhe palladium is still on the podium. But for how long ? In the race for the most precious metal, its lead is irresistibly melting. And gold would be well adorned with its crown. However, the yellow metal does not particularly shine on the markets this year. It is trading around $ 1,780 per ounce (around $ 1,577). Either a quasi-on-site compared to its January price. And a sharp decline compared to the acceleration of summer 2020. As the sun darted its rays, gold burned between the fingers of speculators and made sparks by crossing the historic bar of 2,000 dollars an ounce.
An air hole
Palladium reached its peak in May 2021. Defying all the laws of gravity, it soared to exceed $ 3,000 per ounce. Pulverizing his record once again. Already, in 2017, some were wondering about the beginnings of the take-off of this precious metal. Since then, its trajectory has tangent to the vertical. Passing the price of 1000 dollars an ounce, then 2000 and finally 3000 dollars an ounce. The palladium seemed to be swollen with helium. So much so that, year after year, it was at the top of the ranking of the largest increases in raw materials.
A position that he should not keep in 2021. Indeed, since May, the tide has turned and the balloon is the victim of an air gap. As the balance sheet time approaches, the gray metal is trading around $ 1,800 an ounce, down 25% from its January price. The palladium has turned pale. A change of tone all the more striking as, this year, rare are the raw materials to look gloomy.
A pinch of this material slips into the exhaust pipes to filter the polluting emissions of gasoline engines
Wheat, corn, rapeseed, sugar, palm oil, petroleum, gas, copper, iron ore, zinc… and the list goes on and on, all have benefited from the tremendous appetite of investors and their full pockets. The money inoculated into the economy to cope with the effects of the Covid-19 pandemic has inflamed financial markets.
So why this sudden drop in palladium? This metal, prized by jewelers, is just as much by car manufacturers. A pinch of this material slips into the exhaust pipes to filter the polluting emissions from gasoline engines. Stricter environmental rules and the loss of speed of diesel engines have encouraged its use and made its price soar. Except that obstacles now stand in his way.
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