“I think it is part of the broader rotation by investors into more cyclically geared assets that started late last year as investors become more confident about the global macro outlook,” ETF Securities’ head of research Nicholas Brooks said in the article.
Analyst anticipate large supply deficits from Russia and South Africa while China and the U.S. will see greater auto demand.
“We are forecasting sustained deficits in the palladium market to the end of the decade of (around) 350,000 ounces per annum, which we expect will place upward pressure on prices over the medium term,” Deutsche Bank said in a note.
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Max Chen contributed to this article.