Palladium briefly hit $US900 a troy ounce on Monday for the first time since 2001, according to Mining.com, as investors took positions on sanctions against Russia limiting global supplies.
The “white” metal has climbed 7% since hitting monthly lows August 5.
“Palladium investors [moved] convincingly net long amid expectations long term supply may be suppressed
due to recent sanctions imposed against Russia and a firming demand environment,” TD Securities said in a recent note.
Morgan Stanley’s Adam Longson said prices are likely to be supported for some time for those same reasons.
It’s now now up 24% this year, the third-greatest gains among all commodities, according to FinViz. Prices saw momentum earlier this year on South African mining strikes. Russia and South Africa combine for 80% of the world’s global palladium output, according to Mining.com.
Palladium use is concentrated in the auto industry. It’s also used to make certain computer chips.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.