Palladium tops $1,500 for first time

LONDON: Precious metal palladium on Wednesday reached above $1,500 per ounce for the first time in trading thanks to supply deficit worries, according to analysts.

Palladium hit $1,504.52 per ounce from $1,480.15 late on Tuesday.

It later Wednesday dipped back to $1,500.27 per ounce.

"Palladium exceeded, albeit briefly, the $1,500...mark," Commerzbank analysts said in a note to clients.

But they added: "We see no justification for this high price, which is being attributed to supply shortages. As we see it, speculative financial investors have been jumping on the bandwagon for some time now, boosting the price rise."

Worth more than gold which is trading at about $1,350 per ounce -- palladium is used to make both jewellery and catalytic converters in vehicles.

Palladium is included in catalytic converters for petrol engines, while sister metal platinum is a key component in converters for diesel engines.