Palladium targets $1,900 mark after South Africa outages

Palladium prices rose during trading hours today, near the $1,900 per ounce threshold, amid concerns over production disruptions in South Africa as the country is facing a power outage crisis.

Palladium mining alongside other metals have stopped in South Africa, the world's largest supplier of platinum and the second largest of palladium.

This came after a blackout for the seventh straight day in South Africa, which has affected government facilities and the country's industrial activities.

Palladium continues to show a record-breaking run, due to the lack of supply and a surge in demand, as the metal is used in the manufacturing of car components that reduce exhaust and pollutant emissions.

Analysts at Citigroup forecast Palladium to advance further to fresh record highs and breach the $2,500 mark in the middle of 2020, due to supply shortages.

As for trading, palladium March futures surged 0.8% to $1,884.8 an ounce as of 14:25 GMT, and hit a session-high of $1,886.1 and a low of $1,865.