AMSTERDAM/LONDON: Palladium extended its blistering rally to an all-time high within striking distance of $3,000 on Friday on supply concerns and bets for improving demand, while gold pulled back on strong US economic data. Palladium jumped more than 3% to a record high of $2,925.14 per ounce, poised for a second straight weekly gain.

Many analysts expect a further run towards $3,000 as automakers ramp up purchases of the metal, worsening a supply shortage.

“We’re expected to outstrip supply for multiple years out,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

“There’s a big push for environmental reform, countries are all in, companies are pushing for more green energy and lowering emissions, and an effective way to do it is by retooling catalytic converters and relying on more electric vehicles. So that’s a lot of palladium, platinum, and copper demand right there.”

Platinum rose 1.9% to $1,226.55 per ounce by 10:23 a.m. EDT (1423 GMT).

Spot gold, meanwhile, was 0.6% lower at $1,773.45 per ounce, giving up initial gains driven by a weaker dollar and subdued US yields.

US gold futures dipped 0.4% to $1,774.20 per ounce.

Silver fell 1.1% to $25.89 per ounce.