Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Palladium Extends Rally to Highest Since 2001 on Auto Outlook

Don't Miss Out —
Follow us on:

Jan. 13 (Bloomberg) -- Palladium prices rose, extending a rally to the highest since March 2001, as improving prospects for the auto industry boosted demand for the metal used in pollution-control devices in vehicles.

This week, Bayerische Motoren Werke AG, Daimler AG and Audi AG, the world’s largest makers of luxury cars, forecast record 2011 sales. In 2010, China remained the world’s largest auto market after vehicle sales jumped 32 percent. Palladium futures have jumped 91 percent in the past 12 months, outpacing gains in gold, silver and copper.

“The fundamental reasons are there, like the auto recovery and Chinese demand,” said Andrey Kryuchenkov, a strategist at VTB Capital in London. “People are looking at palladium and copper” because of “some underlying fundamentals,” he said.

Palladium futures for March delivery rose $6.70, or 0.8 percent, to settle at $813.45 an ounce at 1:51 p.m. on the New York Mercantile Exchange. Earlier, the price reached $825.10, the highest since March 20, 2001.

The metal may climb to $1,000 this year on increased investment demand, said Edel Tully, an analyst at UBS Ltd. in London.

Platinum futures for April delivery advanced $20.10, or 1.1 percent, to $1,821.20 an ounce. The price was up for the sixth straight session, the longest rally since September. The metal has climbed 16 percent in the past 12 months.

To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.