Palladium jumps amid supply shortfall concerns
The price of palladium surged Tuesday after a report highlighted a potential shortfall in supply of the metal.
Palladium for December delivery gained $28.55, or 4.7 percent, to finish at $636.60 an ounce. It was the biggest gain in almost three months.
January platinum rose $19.90 to $1,586.40 per ounce. Both metals are used to make catalytic converters in autos.
Demand for palladium will rise as more of it is purchased for use in catalytic converters, while supplies from mines in Russia and South Africa will remain constrained, according to a report by London-based Johnson Matthey. The company is a manufacturer of catalytic systems that are used to reduce harmful emissions from engines.
Auto sales may also be bolstered further in coming months as people buy new cars to replace those damaged by Superstorm Sandy, supporting demand for the metal, said Phil Streible, a senior commodities broker at RJ O'Brien in Chicago.
In other metals trading, Gold was little changed as traders waited for more developments on Europe's debt crisis. The crisis has increased demand for the metal as a safe haven and as a hedge against inflation.