Platinum and Palladium prices rose sharply this week, driven by record-high Silver and Gold levels and prospects of increased demand from the European automotive sector following indications of a softer 2035 combustion engine ban, Commerzbank's commodity analyst Carsten Fritsch notes.

Palladium climbs to $1,600 amid precious metals rally

"The price of Platinum rose yesterday to $1,800 per troy ounce for the first time since September 2011. The price of Palladium rose to $1,600 today, but is still trading below the 2½-year high of $1,636 per troy ounce reached in October."

"The recent price increases for Platinum and Palladium can largely be explained by the likewise sharp rise in the prices of Gold and, in particular, Silver, which reached a new record high of $64.7 per troy ounce on Friday."

"In addition, the looming softening of the EU's planned 2035 ban on the sale of cars with combustion engines may have given prices a boost, as this could mean that more Platinum and Palladium will be needed in the European automotive industry over the next 10 years than previously expected".