Palladium prices have surged 1,520% since 2009 due to tight supply and higher emission standards, and analysts at the Bank of America forecast the metal could rise to US$3,500 per oz. in the fourth quarter of 2020 from the current spot price of US$2,302.75 per ounce.
The bank estimates that palladium will rise to an average price of US$2,450 per oz. in the first quarter and to US$3,000 per oz. during the second and third quarters for a full-year average price of US$2,988 per oz. in 2020.
The metal is a key component in catalytic converters used in conventional gasoline-fueled combustion vehicles. The average auto-catalyst contains about US$420 worth of platinum group metals (PGMs), the bank estimates.
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