Palladium falls despite forecasts of increased demand

Analysts' forecasts for palladium point to high demand from automakers, which is due to government's efforts to combat climate change and greenhouse gas emissions.

Whilst, palladium prices fell today below the $1,500 barrier amid volatile trading in the markets.

Analysts expect a rise in demand on palladium from automakers as it is used in vehicle components that reduces carbon emissions.

The analysts also said that rise in palladium prices and the increase in production have helped to balance the fall in nickel, copper and platinum prices amid US-China trade war fears.

Mining companies expect palladium supply to fall this year by about 600,000 tonnes due to higher demand from automakers.

By 14:22 GMT, palladium futures (September delivery) fell by 0.9% to $1476.1 an ounce, with a high of $1488.5 dollars and a low of $1475.5.