Palladium prices rose to their highest level in four months on Tuesday, rallying by more than 3% on the day as a combination of fund-related buying and a favorable technical backdrop boosted the price, traders said.
Spot palladium was last at $538 an ounce at 0755 GMT, compared with $542.95 late in New York on Monday, having hit a session high of $543.50.
"Overall, palladium and platinum, especially palladium, when you look at the ratios, has been a standout performer. Palladium has had a good August by comparison to previous years, as well," one trader said.
"We're getting better noises coming out of the eurozone about projected growth and industry and, obviously, palladium is quite tightly linked to industry," the trader said.
Palladium, which is predominantly used in the production of auto catalysts, is on track for a 33% increase this year and is one of the top performers of the entire commodities complex.
Traders are looking at $570 an ounce as the next upside target, which would take palladium to its highest price level since the start of 2008.
Spot palladium was last at $538 an ounce at 0755 GMT, compared with $542.95 late in New York on Monday, having hit a session high of $543.50.
"Overall, palladium and platinum, especially palladium, when you look at the ratios, has been a standout performer. Palladium has had a good August by comparison to previous years, as well," one trader said.
"We're getting better noises coming out of the eurozone about projected growth and industry and, obviously, palladium is quite tightly linked to industry," the trader said.
Palladium, which is predominantly used in the production of auto catalysts, is on track for a 33% increase this year and is one of the top performers of the entire commodities complex.
Traders are looking at $570 an ounce as the next upside target, which would take palladium to its highest price level since the start of 2008.
