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However, in the near term, given the elevated net tactical positioning in palladium coupled with palladium ETP holdings being within 1% of their record high, platinum has scope to gain momentum in the next few months...

06 Apr 2013

LONDON (Commodity Online): Platinum is likely to make a sustained up-tick as the second half of the year unfolds, stated a recent market analysis by London based Barclays.

Challenged supply backdrop, reduction in net fund length and scope for improvement in underlying demand as the year unfolds would support platinum movement, the report added.

In the recent days of trading, the PGMs were unable to escape unscathed, but counterpart of platinum, palladium suffered the smallest losses.

Barclays maintains the view that palladium holds the most constructive fundamentals and retains Barclays preferred pick longer term.

However, in the near term, given the elevated net tactical positioning in palladium coupled with palladium ETP holdings being within 1% of their record high, platinum has scope to gain momentum in the next few months.

“Our auto analysts expect European auto production to fall by less than 1% in Q3 13 from a 13.7% y/y decline in Q1 13,” Barclays said.

Meanwhile, Anglo American Platinum has extended its review period until the end of April, but the biennial wage negotiations are due to take place over the summer with a number of contracts expiring on June 30.


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