Though all the four precious metals have been slowly retreating, palladium has a year-to-date gain of 24.9%. It also a tremendous five-day gain of approximately 5.6%. Palladium seems to be associating more with equity market sentiment than precious metals are. Palladium is also famous as an industrial metal. On Tuesday, palladium prices rose to their highest level in more than five weeks.
The hopes of stronger auto sales in the US is likely helping palladium. It is expected that palladium markets will post a deficit of 651,000 troy ounces in the current year. Also, there may be an additional shortfall in 2017 due to the autocatalyst demand. According to the latest figures from CAAM (China Association of Automobile Manufacturers), Chinese passenger vehicle sales continue to record steady grow with a 20.3% rise year-over-year.