BEIJING: Palladium’s extraordinary rally has the potential for prices to test US$3,000 an ounce, according to Goldman Sachs Group Inc’s Jeffrey Currie, who twinned that outlook with a warning that such peaks wouldn’t last for long as the record levels would erode demand.
“The upside potential is significant as the market is now in a demand-rationing phase, ” said Currie, head of global commodities research. But gains wouldn’t “be sustainable, as once demand was destroyed, prices would fall back again only to tee up for another spike, as we have seen the last year, ” he said.