Palladium will create best monthly performance for eight and a half years, but can not throw caution
however, palladium rally is closely related to the stock market, and many people believe that the stock market rally is relatively weak, and in recent years in a tight market failed to invest in palladium, or means that investors will stop before trying to push up prices sharply.
palladium hit on Wednesday 9 months high $701 an ounce, close to its best monthly performance since February 2008.
affected by British referendum back the earlier this year, the performance of the palladium as a safe-haven gold and silver.
on June 24th, namely Britain withdrew the referendum on the next day, palladium fell 3%, while gold surged 5% and silver up 2. 4%.
” Markets have a certain degree of chase after go up, & throughout; Mitsubishi JonathanButler analysts said. “ And improvement in risk appetite, which seems to be supported palladium as a comply with the performance of the cycle of industrial assets, and we haven't seen this kind of situation for a period of time. ”
palladium potential supply and demand situation of the market is tight. Metal consultancy, GFMS, an analyst at team estimates that over the past four years the palladium market in short supply state, palladium gold production can't keep up with demand growth of catalysts.
GFMS expect supply will continue to exist, and continued until 2018, the supply will be more than 1 million ounces.
even so, the inventory availability to crack down on the price at any time. Palladium prices fell nearly 30% last year, and in January hit its lowest level since the middle of 2010, 449 an ounce. $55.
JohannWiebe GFMS analyst believes that the slide is drawing new industrial demand, led to the first rebound of the palladium, and stimulate the interest of investors, add strong power to rally.
however, over the past few years in the case of tight fundamentals to investment, can make people wary.
” In general, palladium in a better position & ndash; — Gold prices continue to rise, the risk will rise, the market higher, & throughout; Ubs analyst JoniTeves said.
” But over the past few years the legacy of problems still exist, people in those years was disappointed. ”
Teves believes that the trajectory suggests that, compared with the fundamentals, the palladium now may be the transition of the external market environment more sense.
in the near future, according to a survey of global fund managers and brokers to equities this year, have become less optimistic about palladium in cautious over $700.