The silvery-white precious metal used in catalytic converters has been on a tear this year that shows no signs of slowing. On Thursday it rallied to a record $2,395.71 an ounce and has notched a 19% gain for 2020 after skyrocketing 54% last year.

The gains are surprising even the most seasoned market watchers, who say there’s little chance that tight supply conditions will ease. South Africa, a major miner, reported a sharp drop in platinum-group metal production in November. Adding to the bullish mood was the U.S.-China trade truce, and record car sales in Europe last month even though they are unlikely to be repeated.

“The dynamics are so strong. Nobody can tell me that this is just fundamentals,” said Commerzbank analyst Carsten Fritsch. “This is already becoming a bubble.”

Palladium’s rise also has been fueled by strong demand as stricter emissions targets force carmakers to use more of the metal in autocatalysts. As low mine production continues to be eclipsed by demand, investors with exposure to exchange-traded funds backed by the metal are holding on tightly, further limiting supply.

“My guess is it’s getting more and more difficult to find someone willing to sell ETF positions to cover the market deficit,” Giovanni Staunovo, a commodity analyst at UBS Wealth Management, said by phone Thursday. “This is part of the theory, if it’s driven by the above-ground stocks. If you were to have it and you know there is no one willing to sell either tomorrow, why would you sell it now at a lower price if you know you can get it tomorrow at an even higher price?”

On Thursday, spot prices jumped by as much as 5.7%, or nearly $130 an ounce. The metal traded up 2.2% at $2,315.37 as of 10:06 a.m. in New York.

Palladium’s less expensive sister, platinum, touched $1,041.71 an ounce in the spot market, the highest in nearly three years, before reversing. Gold and silver both dipped.

Still, palladium’s technicals are stretched and some analysts expect a sharp and brief retreat. The metal’s 14-day relative strength index has held above 80 for seven days — the longest since 2016.

“It’s overbought but ignoring it,” said Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone. There should be a sharp pull-back at some point, she said.

Several market players meanwhile raised their palladium price forecasts for 2020, including HSBC Securities (USA) Inc. and UBS Group, confirming their bullish outlook for the metal amid a continuing supply deficit.

“The risk on the downside lies with some speculative profit taking, but any correction should be met with aggressive buying and remain short-lived,” precious metals refiner and trader MKS PAMP Group said in a note.

Currently, the department hosts “lockups” in Washington for major reports lasting 30 to 60 minutes, where journalists receive the data in a secure room, write stories on computers disconnected from the internet, and transmit them when connections are restored at the release time. Other electronic devices were already prohibited.

Bureau of Labor Statistics Commissioner William Beach said in a letter Thursday that BLS and other Labor agencies have raised concerns about data-security stemming from the lockups, and cited a 2014 report by the department’s inspector general saying several news organizations that participate are able to profit by providing the numbers to algorithmic traders in a format that provides them an advantage.

Lockups will continue and journalists will be able to ask questions of statistics officials, Beach wrote. Releases will continue to be posted on Labor websites and on Twitter, and journalists can leave the room to file stories once the embargo lifts, Beach wrote.

The change will take effect March 1, Beach said.

Labor Department officials were asked on a conference call with journalists if the change was specifically aimed at Bloomberg News, which participates in the lockups and whose founder and majority owner, Michael Bloomberg, is running for the Democratic presidential nomination. They denied any political motivation.

All three main U.S. stock benchmarks surged to all-time highs after setting multiple records earlier this week, with technology and financial shares leading the surge. Alphabet Inc.’s market valuation hit $1 trillion for the first time. Banks and chipmakers rallied after solid earnings reports from Taiwan Semiconductor Manufacturing Co. and Morgan Stanley. Treasuries fell after data showed U.S. retail sales strengthened in December, while the dollar gained.

“The consumer is really in positive shape,” said Ryan Detrick, senior market strategist at LPL Financial. “Then when you factor in the alleviation of the U.S.-China tensions, the market is in a pretty good spot.”

The Senate approved President Donald Trump’s U.S.-Mexico-Canada free trade agreement, handing the president a major political win on the same day senators were sworn in as jurors in his impeachment trial.

The formal signing of a phase one deal between the world’s two biggest economies has put the trade war on hold as far as many investors are concerned. Assuming the detente lasts, traders will be seeking fresh catalysts, most likely in economic data and the ramp-up of earnings season.

“The question is if we can keep up the momentum,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial. “Up next, housing, an economic bellwether, which will provide yet another data point of how our economy closed out the year.”

West Texas crude fluctuated in a narrow range before pushing higher.

Elsewhere, the Stoxx Europe 600 index closed at a record high after swinging between gains and losses. The euro erased earlier gains, while most European bonds edged up. The ruble slipped in the wake of Russian President Vladimir Putin’s call for sweeping constitutional changes and subsequent replacement of his long-serving prime minister.

Meanwhile, soybeans slumped overnight after China signaled purchases would be based on demand, rather than a pre-set amount.

Here are some events to watch for this week:

–China GDP, along with key monthly data for December, come on Friday.

–A final reading on the euro-zone’s December inflation is also due on Friday.

There are some of the main moves in markets:

Stocks

-The S&P 500 index jumped 0.8% to 3,316.89 as of 4:03 p.m. New York time, the highest on record with the largest climb in two weeks.

-The Dow Jones Industrial Average jumped 0.9% to 29,297.57, the highest on record with the biggest increase in two weeks.

-The Nasdaq Composite index climbed 1.1% to 9,357.13, the highest on record with the largest surge in two weeks.

-The Stoxx Europe 600 index climbed 0.2% to 420.54, the highest on record.

Currencies

-The Bloomberg Dollar Spot Index advanced 0.1% to 1,192.28, the largest gain in a week.

-The euro dipped 0.1% to $1.1138, the biggest decrease in more than a week.

-The Japanese yen depreciated 0.2% to 110.15 per dollar, the weakest in eight months.

Bonds

-The yield on two-year Treasuries climbed one basis point to 1.56%.

-The yield on 10-year Treasuries advanced two basis points to 1.80%.

-Britain’s 10-year yield dipped one basis point to 0.643%, reaching the lowest in 11 weeks on its fifth straight decline.

-Germany’s 10-year yield declined two basis points to -0.22%, the lowest in more than a week.

Commodities

-West Texas Intermediate crude climbed 1.2% to $58.53 a barrel, the biggest increase in almost two weeks.

-Gold weakened 0.1% to $1,554.03 an ounce.

ThaiBMA President Tada Phutthitada said on Thursday (January 16) that foreign investors made net sale of Bt84.5 billion in short-term Thai bonds for the purchases of long-term bonds last year.

Foreign investors held Bt911.8 billion in Thai bonds as of the end of last year, down Bt771.2 billion year on year. Their combined holding Thai government bond and Bank of Thailand bonds represented 10.5 per cent of total market capitalisation last year, a drop of 11.9 per cent from 2018.

Foreign investors reaped high returns to investment in Thai government bonds in 2019, he said.

Investment return in government bonds was estimated at 15.3 per cent, compared with 5 per cent from equities. The return calculation was based on the assumption that investors invested proportionally in bonds available in the market, or investing in bonds with an average maturity of 12 years.

Thai investors mostly invested in short-term bonds with lower returns.

The high return from bond investment last year mainly came from capital gain given that bond yields were at a historic low.

Yield of 10-year maturity bonds stood at 1.36 per cent on January 6 this year, compared to the lowest level of 1.43 per cent on August 29, 2019, while bond yields with maturity between one month to four years were lower than the central bank’s policy rate of 1.25 per cent.

“As bond yields (one-month to 4-year bonds) have been lower than the BOT’s one-day repurchase rate, we expect the central bank to cut its benchmark rate in the first quarter of this year,” said Tada.

The bond yield’s inversion curve suggests that investors expected lower interest rate in the coming months, he added.

Titled “Opportunity2030: The Standard Chartered SDG Investment Map”, it reveals an almost US$10 trillion (Bt302 trillion) opportunity for private-sector investors across all emerging markets, with Thailand representing around US$58 billion of that total.

The study identifies opportunities for the private sector to contribute to three infrastructure-focused goals between now and 2030: SDG 6: Clean Water and Sanitation, SDG 7: Affordable and Clean Energy and SDG 9: Industry, Innovation and Infrastructure across emerging markets.

Rapid progress, vast potential

In Thailand, the greatest SDG (Sustainable Development Goal) investment opportunities are found in transport infrastructure and improving digital access, both key indicators of SDG 9, which encourages improvement in industry, innovation and infrastructure.

Opportunity2030 finds that a significant improvment of Thailand’s transport infrastructure will require an estimated private-sector investment of US$40.6 billion between now and 2030, and to achieve universal digital adoption – a combination of mobile phone subscriptions rates and internet connectivity – will require private-sector investment of around US$17 billion.

Thailand already has universal access to power (a key SDG 7 indicator) and 99 per cent of the population has access to clean water and sanitation (a key SDG 6 indicator).

Achieving universal access to clean water and sanitation therefore represents a relatively modest opportunity for the private sector of US$0.7 billion.

Plakorn Wanglee, President & CEO at Standard Chartered Bank (Thai) said: “Thailand is an SDG success story so far. As the country continues its efforts towards the goals, the private sector has a central role to play, especially with the government expressing commitment to encourage more private sector investment.

“Opportunity2030 provides an important map of the SDG opportunities for private sector investors looking to invest with impact and improve the lives of millions of Thais over the next decade”.

Bill Winters, Group Chief Executive at Standard Chartered, said:“The UN Sustainable Development Goals are among the most ambitious projects humanity has ever attempted. As well as offering our best hope yet of tackling the world’s most serious challenges, they also offer a unique opportunity for the private sector. For the goals to be met, the private sector must play a central role in deploying capital to get projects off the ground. Opportunity2030 provides a map of these opportunities, revealing the sectors and markets where investors can best contribute to the SDGs whilst achieving sustainable returns.”

“Currently, not enough capital is reaching the countries that need it the most. With the UN’s 2030 deadline for achieving SDGs just 10 years away, the time to act is now.”

Opportunity2030: The Standard Chartered SDG Investment Map is a macroeconomic study that draws on global data sources and indicative private-sector participation rates to provide companies, institutional investors and other stakeholders with an overview of where their investments could have the greatest impact. It spans 15 of the world’s fastest-growing economies and estimates the potential private-sector investment opportunity to contribute to three of the most investment-ready SDGs (6,7 and 9).

*Thailand already has universal access to power so the investment opportunity to achieve this is not included in the country’s total investment opportunity figure. However, with a growing economy, there will be an additional need for continual investment in affordable and clean energy to maintain access in a sustainable way.