PALLADIUM (Reuters) - Palladium surged to a new record on Monday, amid expectations of a supply deficit this year, helping to break the $ 1,700 mark for the first time.
Palladium rose 0.8% to $ 1,694.85 an ounce after hitting a record $ 1,700.71 earlier in the session.
Palladium has risen about 28% since the beginning of the year, and has seen an increase of 22% in 2016, 56% in 2017, and about 16% in 2018.
Palladium is used in the catalytic converters in the automotive sector to reduce carbon emissions. It is also used in electronics, dentistry, hydrogen purification, jewelery and catalytic converters.
Russia, South Africa, Canada, the United States and Zimbabwe are the world's top five producers of palladium.
Russia produced 81 metric tons of palladium in 2017, while South Africa produced 78 tons, Canada 19 tons, America 13 tons and Zimbabwe 12 tons.
Gold is falling
In contrast, gold fell in today's trading, as the uncertainty about the trade war between the United States and China prompted some investors to resort to the safe dollar to put pressure on assets denominated in the US currency.
Spot gold fell 0.4% to $ 1490 an ounce by 07:43 GMT, after prices hit $ 1486.60 in the previous session, the lowest level since September 18.
The yellow metal futures in the US fell 0.6% to $ 1496.60 an ounce.
The dollar index stabilized near its highest level in a week, and stock markets in Europe and Asia - including China - stabilized today, ignoring news that the US administration is considering deregulation of Chinese companies from US stock exchanges.
Bloomberg quoted US Treasury Department official Monica Crowley as saying on Saturday the White House was not considering the move at the moment, after Reuters reported on Friday that the administration was considering the measure.