Palladium ETF Holdings Hit Three-month High

Bloomberg reported that ETF holdings of palladium rose to a three-month high following “brighter economic prospects” in the US.

As quoted in the market news:

Metal in palladium-backed ETPs climbed to 92.4 metric tons, the highest since Feb. 19, according to data collated by Bloomberg as of Wednesday. Volumes traded on the Nymex in New York were more than double the 100-day average for the time of day on Thursday.

Palladium, mainly used in emissions control systems of gasoline-driven vehicles, is drawing support from recent U.S. data indicating stronger growth in the world’s largest economy. Usage of the metal by vehicle makers is expected to climb to a record this year after three years of supply shortages. U.S. automakers reported the best April sales in a decade earlier this month.

‘The outlook for car sales in the U.S. has been quite good and this translates through to the outlook for palladium consumption,’ Jonathan Butler, a precious metals strategist at Mitsubishi Corp., said by phone from London. The metal is taking its lead from U.S. data, he said.

Palladium for immediate delivery was little changed at $785.01 an ounce at 11:57 a.m. in London trading, according to Bloomberg generic pricing. The metal has rebounded 8.2 percent since reaching a 13-month low of $725.25 on March 31.

Click here to read the full Bloomberg report.