Dollar rallies palladium, but auto industry woes set the tone

Palladium Investing News reports as the dollar weakens with the settling of financial markets, palladiun rallied to about $169.50 per ounce.

Palladium and platinum have both taken big hits due to the health of the auto economy. In the US, between September 2007 and September 2008, car sales fell by 26.6 per cent, and the trends in Europe are not looking any better. About half of the palladium and platinum produced in the world is used by the auto industry. To reduce the risk of price volatility and supply disruptions, automakers normally maintain a stockpile of PGM metals equivalent to about six month to one year’s consumption.

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