US, WASHINGTON (ORDO NEWS) — The price of palladium on Tuesday jumped 12%, at a record pace since 2000, after quarantine was announced in South Africa, the largest producer of this metal in the world.
The price of palladium, which is used in autocatalysts, increased to $ 1.932.25 an ounce by 14:30 Moscow time, while platinum rose 6.4% to $ 683.51 an ounce, also due to the introduction of 21-day universal quarantine in South Africa.
“We believe that this can provide significant support for the prices of platinum group metals in the short term,” said Dmitry Glushakov from VTB Capital.
“The country accounts for about 70% of global supplies of platinum and 35% palladium, while 21-day quarantine will probably lead to a decrease in supply by 4% and 2% in 2020, respectively.”
Gold is also becoming more expensive as new incentives have halted investor withdrawal for cash.
The spot price of gold increased by 2.5% to $ 1,592.4 per ounce, and earlier quotes reached a maximum since March 13. On Monday, gold rose by 3.7%, at the fastest rate since June 2016.
“If measures to control the effects of the virus have an effect and the number of new cases decreases, gold could rise, as some long-term investors buy it as an inflation hedge,” said Quantitative Commodity Research analyst Peter Fertig.
On Monday, the US Federal Reserve introduced a range of programs for large companies, households, and small businesses, citing the “huge difficulties” facing the economy due to the coronavirus pandemic.
According to Goldman Sachs analysts, inflationary concerns raised by central bank measures could support gold for the current year, as gold is an “extreme currency”.
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