LONDON, Sept 14 (Reuters) - Palladium prices rose to their highest level in four months on Tuesday, rallying by more than 3 percent on the day as a combination of fund-related buying and a favourable technical backdrop boosted the price, traders said.
Spot palladium XPD= was last at $538.00 an ounce at 0755 GMT, compared with $542.95 late in New York on Monday, having hit a session high of $543.50.
“Overall, palladium and platinum, especially palladium, when you look at the ratios, has been a standout performer. Palladium has had a good August by comparison to previous years as well,” one trader said.
“We’re getting better noises coming out of the euro zone about projected growth and industry and obviously, palladium is quite tightly linked to industry,” the trader said.
Palladium, which is predominantly used in the production of auto catalysts, is on track for a 33 percent increase this year and is one of the top performers of the entire commodities complex.
Traders are looking at $570 an ounce as the next upside target, which would take palladium to its highest price level since the start of 2008. (Reporting by Amanda Cooper)
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