The cut to Nornickel’s production guidance will support a higher price for palladium but ultimately, demand-side factors are why economists at Capital Economics think it will outperform platinum. They expect the palladium price to rise a touch, but the platinum price to drop back. Key quotes “Supply of both PGMs is still expected to recover this year, but we now expect the rebound in palladium supply to be slower. We think that production of both precious metals will return to around 93% of 2019 levels this year.” “Given that we now expect production of both metals to recover at roughly the same rate, we doubt that supply will have a major influence on the relative prices of platinum and palladium over the next year or so.” “We think that the trend of falling platinum and rising palladium autocatalyst demand looks set to continue, especially as vehicle production recovers.” “We expect investment demand for platinum to ease back. We expect investment demand for both gold and industrial metals to fall over the course of this year. Accordingly, platinum is unlikely to benefit from investor buying, with negative implications for its price. In contrast, investors’ holdings of palladium are already negligible, so any changes are unlikely to have much of an impact on its price.” “The price of palladium will rise to $2,700 per ounce (from $2,630 currently) by end-2021 and $2,800 by end-2022. In contrast, we expect the price of platinum to fall to $900 per ounce (from $1,180 currently) by end-2021 and $800 by end-2022.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/GBP to push lower towards the 0.85 mark by late-2021 – Rabobank FX Street 1 year The cut to Nornickel's production guidance will support a higher price for palladium but ultimately, demand-side factors are why economists at Capital Economics think it will outperform platinum. They expect the palladium price to rise a touch, but the platinum price to drop back. Key quotes "Supply of both PGMs is still expected to recover this year, but we now expect the rebound in palladium supply to be slower. We think that production of both precious metals will return to around 93% of 2019 levels this year." "Given that we now expect production of both metals to recover at… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.