The palladium exchange traded fund is shining, with the precious metal on pace for its best rally since 2013 as strong fundamentals help add bullish bets.

The ETFS Physical Palladium Shares (NYSEArca: PALL) was up 1.2% Wednesday and has gained 5.4% since the October 3 low. PALL is up 9.5% year-to-date.

The palladium spot price was up 1.0% Wednesday to $793.5 per ounce, heading for its largest three-day advance since July 2013., Bloomberg reports.

Morgan Stanley analyst Joel Crane argued that palladium fundamentals remain attractive due to a structural deficit. Additionally, Morgan Stanley raised its outlook on the precious  metal, with an estimated 3% increase to $825 for 2014 and a 10% rise in its 2015 target to $952.

Market observers believe palladium shortages will persist through the end of the year due to a five-month-long miners’ strike in South Africa earlier this year, Wall Street Journal reports.

Palladium prices plunged over the past month on fears that a slowdown in Europe and China would translate into weaker car demand – palladium is utilized in auto exhaust filters.

In light of the recent sell-off and lingering supply concerns, traders have jumped on the relatively cheap precious metal.