LONDON (Commodity Online): Exchange-traded funds for platinum group metals have started the year on firmer footing with inflows, said UBS in a research note.
“With only two days to go, it looks like January will mark the first month of net inflows for both metals in quite a while,” the bank added.
“For platinum, a net increase in holdings was last seen in August at 25.47 koz (thousand ounces). So far this year, ETF investors have added 35.11 koz to their positions. The change in investor sentiment is even more extreme for palladium, which has not seen additions to ETF holdings since April, the only month that recorded net inflows for the entire year.”
Still, UBS offers some caution, saying the fundamental picture has not changed materially.
“For palladium in particular, a brief look back towards the $680 (area) on Friday was quickly met by end-user interest and some options-related buying. Nevertheless, the uncertain economic picture cannot be ignored as a potential headwind for PGMs,” UBS concluded.
