The price of the precious metal palladium soared on Tuesday, as investors anticipated growing demand for the industrial mineral in the coming year.
Palladium June futures (PAM21) jumped more than 5% to $2,503.
The spike is a bet on a better global economy as the world emerges from the coronavirus pandemic but, it’s also based on concerns about a smaller-than-anticipated supply.
Investors are growing concerned about shortages of the palladium supply after Russia’s Norilsk Nickel (NILSY) announced that its metal production volumes may fall short of original guidance. There are ongoing complications with two waterlogged mines in Siberia nonetheless, the company hopes to restore production at two of its mines within three to four months.