Palladium holds near 3-1/2-year high

Palladium held near its highest level in more than three years in a volatile session on Wednesday, underpinned by physical demand for the precious metal, as well as a five-month strike in South Africa. Palladium often tracks sister metal platinum, which has risen nearly 8 percent this year on supply concerns after the strike over wages took out 40 percent of global platinum output and hit South Africa's economy.
Palladium slipped to $848.10 an ounce before bouncing to $852.00 by 0652 GMT, unchanged from the previous session, and not far from a 3-1/2-year high of $854 hit on Tuesday. South Africa is the world's second-biggest producer of the malleable metal which has gained more than 19 percent this year. Gold, which has been overshadowed by palladium and recent rallies in equities, added $1.01 to $1,261.50 an ounce, off a four-month low of $1,240.61 hit last week.