While gold has taken a blow in response to the diminished demand for safe-haven assets, palladium and related exchange traded fund have outperformed.
The ETFS Physical Palladium Shares (NYSEArca: PALL) rose 9.1% over the past week and gained 37.0% over the past year, with the palladium spot price now hovering around $757.0 per ounce, compared to
“Palladium is up more than all the other metals this week and was the top performer last year,”Maxwell Gold, Director of Investment Strategy at ETF Securities, told ETF Trends in a call.
Gold also believed that palladium could continue to shine as tightening market conditions will continue through 2018. Traders have increased positioning in future market as automobile sales hit record highs, especially with rising automobile sales in China.
Along with its safe-haven link in the precious metals space, palladium is also more sensitive to economic cycles and enjoys heavy industrial demand, notably out of the automobile industry where the precious metal is used as an autocatalyst to remove harmful emission particles.