The price of palladium hit another record high on Thursday as demand forecasts for petrol motor catalysts continued to support the precious metal.
Palladium's primary use is in catalytic converters for petrol motors and the price of the metal has risen 50% in the last year on demand forecasts that sales in China and the US will continue to grow.
The metal has also benefitted from a global move away from diesel cars in Europe as emissions controls and related vehicle taxation make petrol vehicles more popular.
On Thursday, the price of palladium was up 1.27% to $1,097.15 per ounce, having hit a record $1,097.90. The previous record set on Tuesday was $1096.50.
Palladium has become so popular it is now costlier than its rival platinum, which fell 0.53% to $957.20 per ounce on Thursday.
Platinum is also used in auto-catalysts, and can be used in both petrol and diesel vehicles.
Analysts at HSBC said last month: "We regard platinum as being oversold and look for a recovery in prices."
Some have suggested that now platinum is cheaper than palladium, auto-catalyst makers will begin to substitute the more expesive metal for platinum.
Paul Wilson, chief executive of the World Platinum Investment Council, said: "Demand from the automotive sector will remain firm, and there is increasing anecdotal evidence that automakers in the US and Europe are actively considering switching from palladium to platinum loadings on gasoline vehicles, which will likely have a considerable impact on short to medium-term platinum demand should it come to fruition."