Palladium and the UK Automotive Industry
Palladium (Ticker: XPD) is a vital industrial metal, particularly within the UK’s automotive manufacturing sector. It is used extensively in the production of catalytic converters for petrol engines to reduce harmful nitrogen oxide (NOx) emissions.
For UK investors, the XPD/GBP price is highly sensitive to the value of the Pound. Because global palladium is traded in US Dollars, a weaker GBP will often lead to a higher domestic price for the metal, even if global demand remains flat.