Palladium prices rose on Friday as the dollar trades flat against major rivals, while traders assess demand from the automotive sector.
Usages and Applications
The automotive industry is the major consumer of palladium, specifically to process exhaust fumes in catalytic converters.
Palladium recently lost some of its sheen due to increased demand on EV cars worldwide.
However, a supporting point for palladium is the decreasing share of diesel cars in the market compared to gasoline cars, which rely more on palladium converters.
Palladium also plays an important role in the hydrogen energy industry, as palladium can be used to catalyze chemical processes in fuel cells.
The addition of palladium to fuel cell systems improves performance and increases stability and positive activity.
Price Factors
Dollar is a major factor determining palladium prices, with the dollar index declining to 103.4 as of 13:45 GMT, with a session-high at 103.4, and a low at 103.3.
Recent data showed the US labor and real GDP markets surging strongly in the first quarter of the year, underpinning the greenback.
On trading, palladium futures due in June rose 1.4% to $1093.5 an ounce as of 13:46 GMT.