PRESS ROOM
Palladium and platinum down on auto industry woes
Friday 08th October '21
Platinum and palladium have recently faced headwinds due to both demand and supply factors. Supply from South Africa has started to recover following Covid-induced outages last year. On the other hand, the automobile industry – which is the biggest driver of the two metals – continues to face challenges due to semiconductor chip shortages, which may persist until next year. The two metals have also received little respite from their correlation with gold, as the yellow metals remains under pressure from rising yields. Investors looking beyond the ongoing challenges in the auto industry may view the recent decline in prices as creating an attractive entry point for palladium and platinum.