Gold and palladium prices have narrowed to their closest proximity since 2002
A rare silvery-white material is close to dethroning gold as the most valuable precious metal. Palladium, which is used to filter emissions in gasoline car engines, has climbed to record highs recently. Prices are up more than 25% since the start of August and about 10% for the year, making the metal one of the market’s best-performing assets of 2018.
Meanwhile, gold is down about 5% for the year, with investors preferring the safety of the dollar and U.S. Treasurys amid market volatility. A stronger dollar makes metals denominated in the currency more expensive for overseas buyers, while the prospect of higher interest rates makes gold less attractive than interest-bearing assets.
These dynamics can affect palladium as well. But it has been boosted by projections showing supply shortages and steady auto demand.