Palladium ETF positions held all over the world by investors was sunk by two tonnes over the past week. Invest in palladium has been affected by high capital outflows totalled three tonnes, according to a report by the German trade group Heraeus precious metals since the beginning of this year, ETFs.
Palladium looks as if there is a technical corrigendum. You can’t move over $ 860 per ounce, global investors have started to sell metal – price has now fallen to around $ 740 per ounce. The next major technical support is $ 695 per ounce. Most other commodities have taken losses since the disaster in Japanese earthquake. Prices have, however, somewhat in the last few days of trade. Heraeus report claimed that the bullish price fundamentals do not currently offer support for the price of palladium.
Several Nations recently reported sales figures for its domestic car industry. In America, sold in spite of rising petrol prices, 993,000 vehicles by dealers last month. This represents an increase of 27 percent compared to the same period the previous year. In Germany the car sales climbed by 16 percent to around 225 000 cars. In Russia increased sales even faster – with 80% compared with the previous year, reaching 165,000 units.
However, enthusiasm was curbed when the sales figures from China was announced. In comparison with last year’s period sank ´ sales of domestic car dealers with 2,6%. All vehicles sold 967,000, the largest sales slump over the past two years. According to said Heraeus, market experts that the disappointing figures were due to end of government subsidies on the one hand, and at the end of the new year celebrations on the second. Fortunes in the automotive sector has great influence on the prices of Platinum and palladium, since both precious metals are used mainly in the manufacture of catalyst systems.
If the global economy manages to avoid another 2008-09-style moderation, palladium prices likely to rise faster than other raw materials, Heraeus is specified. In such a scenario, the industrial demand is high. Delivery restrictions are also an issue if demand picks up. Russia’s national palladium inventory will be severely depleted in the course of this year. Russia’s mining giant Norilsk Nickel warned supply difficulties last year.
But most investors seem to be more focused on short-term market technicalities right now. Buy palladium during this current patch may be useful for long-term investors who want to take advantage of the price back to build up layers. When investors start refocus on basic data, likely a price boost for white metal.