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Is palladium a worthy investment? - Report

Is palladium a worthy investment? - Report
Palladium prices recently reached its highest level in 16 years

Mubasher: As gold prices are currently on a downwards trend, a recent report by CNN Money has shed the light on another metal that has caught the eyes of some investors, and which analysts believe is a case of strong demand and tight supply.

Gold prices are having an overall good year in 2017, but palladium is seeing a much better performance, as its price spiked nearly 50% in this year, reaching its highest level in more than 16 years.

The price of palladium reached $1,005 per ounce on Monday, according to CNN.

The metal is used in cars, electronics, dentistry and jewellery.

According to CMC Markets, fundamentals maybe driving the price higher, but the technical outlook suggest the possibility of a bull trap, how it behaves over the next few days is likely to hold the key.

Although other metals such as aluminium, copper, cobalt, and nickel have also posted big gains since the start of 2016, palladium prices have doubled in under two years, and are now approaching a record high.

The CNN report also noted that tungsten, which only produced in China, and is used in drills, military projectiles, golf clubs and automotive machinery has seen a recent hike in its prices, as miners have been subjected to a crackdown aimed at ensuring they follow environmental regulations.