”Despite the concerns on the demand side, some traders appear to have decided that the low prices on platinum and palladium were ridiculous and decided to take advantage,” Peter Hug, director of precious metals at Kitco, said in the Wall Street Journal article.
Additionally, the weakening U.S. dollar over the past three days has also helped bump up gains in palladium – commodities are priced in USD and become cheaper for foreign investors as the currency depreciates. The PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP), which acts as an ETF proxy for the U.S. Dollar Index, dipped 1.5% since its October 3 high.
ETFS Physical Palladium Shares
For more information on palladium, visit our palladium category.