The gold price plunge on Friday hammered other precious metals as well, with palladium marking its worst performance since the 2008 financial crisis, down more than 10%.
With stocks in free fall, investors usually turn to gold as a haven of last resort. On Friday, things got so bad that they had to cash in on the metal to cover losses in other markets, spurring its biggest drop since 2013.
Palladium dived 10.2% to $2,554.29 per ounce. Yesterday palladium rose to $2,875
Platinum shed 4.4% to $859.24, facing its worst weekly fall since 2011.
“People are trying to sell whatever they can. It’s an overall sell-off,” Michael Matousek, head trader at U.S. Global Investors, told the Financial Post.
Nornickel, the world’s largest palladium producer, recently said it expects a deficit in the global palladium market of 900,000 ounces in 2020.
A recent PGM market report estimated that the supply deficit for the metal widened to nearly 1.2 million ounces last year and is expected to deepen this year, as stricter emissions legislation in China and Europe will drive up vehicle palladium loadings.
Scotiabank reported that palladium above ground known stocks have reached decade lows.
(With files from Bloomberg)