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Bloomberg Business reported that the palladium price entered a bear market after falling for the fifth session in a row.
Bloomberg Business reported that the palladium price entered a bear market after falling for the fifth session in a row.
As quoted in the market news:
Production in South Africa, the world’s second-biggest supplier, will gain 17 percent to 2.48 million ounces, the highest since 2011, following the five-month mine strike that ended in June of last year, Johnson Matthey Plc said in May. At the same time, slowing growth in auto sales in China will limit demand for the metal, used in pollution-control devices.
Palladium futures for September delivery lost 1.7 percent to settle at $720.35 an ounce at 1:14 p.m. on the New York Mercantile Exchange. The price is down more than 20 percent from a 13-year closing high of $909.55 on Aug. 29, meeting the common definition of a bear market.
James Cordier, founder of Optionsellers.com, commented:
The realization that the supply situation is not that bad and China’s demand will not explode is harming palladium. Concern about the Federal Reserve raising rates is affecting all commodities.