“Production of the metal is estimated to trail consumption by 603,000 ounces this year, and deficits will persists through 2020, according to Citigroup,” reports Bloomberg.

While palladium is a precious metal, the commodity is also highly sought after for its industrial purposes, notably in the automobile industry. Many observers look to palladium as an indicator for care demand and sentiment due to its use in catalytic converters.

“Spot palladium surged 18 percent this year through Wednesday, even as trade-war concerns sent the Bloomberg Commodity Index tumbling toward its first annual loss since 2015. Not even signs of a slowdown in China, the world’s largest car market, have disrupted the ascent of the metal that’s used mostly to curb pollution from gasoline-fueled vehicles,” according to Bloomberg.

For more information on the palladium markets, visit our palladium category.