Palladium is set to generate strong investment returns during 2010, driven both by its use as a precious metal and as a replacement for platinum in automobile manufacturing.
Palladium spot prices dropped by almost 3.7% on Jan. 21, from as high of $468.7 per ounce on just the previous day for spot delivery on the Nymex, following the recall of 2.3 million vehicles by Toyota Motor (TM). The metal remained under pressure as Honda Motor (HMC) joined the recall parade.
Nonetheless, the ongoing recovery in overall auto sales in the U.S. bodes well for the metal. During February, Ford Motor (F) reported a 43% jump in sales, while General Motors, Honda, and Hyundaireported double-digit growth in sales on a year-over-year basis.
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