Palladium prices rallied on Monday, as the weaker dollar encouraged a recovery in the commodities prices after heavy losses last week. Bargain hunting after last weeks lowest price point was hit drove spot palladium to an intraday high of $197 an ounce, more than a five percent rally.
The decline in auto industry sales is having a profound effect on palladium values in the world market. Palladium and platinum are used in catalytic converters and other auto parts: the demand for the precious metals is slackening as a result of higher gas and oil prices.
Palladium futures for December delivery fell $16.90 to settle at $272.90 an ounce on Friday. For more information, click here
Even with the current price drops and uncertainty surrounding when they will make a turn around, some are still bullish about precious metals in the long-term. Given the recently doom and gloom headlines regarding the American economy, an end to the downward slide could be in sight.
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