UNITED KINGDOM August 02 2016 9:27 AM

NEW YORK (Scrap Register): Palladium has outshined gold in the third quarter so far on macroeconomic data that have been mostly positive for the platinum group metal, said Citi Research.

As of an overnight Citi research note, palladium prices were up some 18% for the quarter to date to $710 per ounce, compared to 2.5% gains for gold. 

“Following solid U.S. macro data and a multi-month peak in the U.S. Citi Economic Surprise Index in the past month, which has since pulled back, mid-July saw a raft of consensus-beating data bolster sentiment for palladium, including improved car sales in China during the main driving season,” analysts at Citi added. 

As the single largest market for palladium auto-catalyst consumption, Citi expects Chinese auto sales to remain robust and grow 9% y/y (year-on-year).

Further, Citi analysts point out that CPM Group data indicates global demand for palladium in automobiles will rise nearly 3% to a record in 2016. The palladium market has “seemingly shaken off” previous anxiety and “adopted a more constructive view,” Citi noted.