Palladium Hits Record as Supply Shortage Deepens on Auto Demand

  • Price increase this year built on five straight annual gains
  • Automakers will restock the metal when chip supply recovers
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Spot palladium surged to a record high on bets that rebounding economies will fuel automaker demand, deepening supply shortfalls of the precious metal.

Palladium, used in catalytic converters to curb emissions in gasoline-powered vehicles, rose as much as 4.8% to $2,895.96 an ounce on Wednesday, surpassing the previous record set in February 2020. Prices have climbed more than 17% this year, building on five straight annual gains.