LONDON (Commodity Online): For a second session, Palladium closed lower on the day, while the rest of the complex extended its gains. Silver prices gained 5.6% to settle at $42.85/oz, while Gold prices gained 1.5% to close at yet another all-time high at $1852/oz after testing intraday highs of $1877/oz ahead the Economic Symposium at Jackson Hole, Wyoming, on Friday.

Barring a further substantial weakening in financial markets, our economists do not expect a major policy initiative to be announced by the chairman. Instead they expect him to state that further stimulus remains conditional on the economic outlook. Safe haven buying remains strong as concerns grow that economic growth may falter. Gold ETP holdings rose by 4 tonnes to 2262 tonnes, close to the record highs set recently.

The latest CFTC data for the week ended 16 August revealed tactical investors increased their exposure across the precious metals with the exception of gold. Net fund length in Comex Gold fell by 3.5k lots, predominantly on the back of fresh short positions being established, taking non-commercial positions as a percentage of open interest down to 39% (peak: 51%).

Speculative length in Comex Silver rose predominantly on the back of short positions being covered while non-commercial positions across the PGMs were driven by fresh longs taking Nymex Platinum positions at their highest since mid-June. In PGM news, potential supply disruptions continue to linger.

Anglo Platinum American, the largest platinum producer, has raised its wage offer, and is due to meet the National Union of Mineworkers again on 31 August (Reuters). The last offer ranged between 7.5 – 8%, which was rejected, compared to the NUM demand of 11-12.5%. Separately, Zimbabwe has given foreign firms a 14-day period to submit "acceptable" plans on how they propose to transfer majority stakes to local owners or risk losing permits (Reuters).

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