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Palladium near high as markets rattled

Palladium is proving precious while mixed earnings reports, high profile potential bomb scares in the US, tariff concerns, the Brexit brouhaha and Italian budget woes rattle markets.
Palladium near high as markets rattled Palladium near high as markets rattled Palladium near high as markets rattled Palladium near high as markets rattled Palladium near high as markets rattled

Palladium providing a bright spot

Staff reporter

Major stock indices closed lower yesterday, with the exception of the FTSE100 which managed a slight gain with no thanks to the small number of metals and mining stocks on the index.

Fresnillo (LSE: FRES) fell 4.01% in London yesterday, having lifted its full-year gold outlook but lowered its silver production target.

In Toronto, metals and mining stocks had a dismal day, closing down 2.93% overall.

Among the biggest falls, First Quantum Minerals (TSX: FM) plunged 9.14%, New Gold (TSX: NGD) lost 8.16%, and Hudbay Minerals (TSX: HBM) dropped 7.87%.

Gold is at its highest point since mid-July, at US$1,237 an ounce earlier on the spot market.

Gold stocks were generally higher on the benchmark S&P/ASX200 in Australian lunchtime trade while the diversified mining equities languished.

Meanwhile the palladium price hit an all-time record this week, up from around US$844 on the spot market in mid-August to $1,144/oz on Tuesday.

Bloomberg reported the rise was fuelled by supply concerns, and accelerated due to growing US tensions with Russia, one of the top producers, and stimulus measures in China, a key consumer of the metal widely used in the automotive industry.

Pure play palladium miner North American Palladium (TSX: PDL) enjoyed a gain of more than 4% yesterday, representing a rise of more than 48% year-to-date.