The palladium spot price has updated its historical maximum near the mark of $1,582 per ounce. The price of this metal does not show signs of stopping its growth, which is becoming increasingly parabolic. The asset is in a continuous, almost vertical upward trend since mid-August last year and is likely to continue to move in it for some time. However, taking into account such volatility, it is safe to assume that when palladium reaches its peak, the global correction will be no less rapid.
Bank of America Merrill Lynch (BoAML) experts raised the forecast for palladium for 2019 to $2,000 per ounce. BoAML analysts refer to inelastic supply and demand in this market. According to them, although high prices for palladium can be replaced by cheaper platinum in catalytic converters for gasoline engines, it does not seem to be used everywhere. According to research, palladium is more effective than platinum. Therefore, it is likely that the demand for the metal will increase even in the context of a possible decline in automobile sales.