UNITED STATES March 18 2014 1:35 PM
TOKYO (Scrap Register): Japan based Mitsubishi sees potential for palladium to test the $800-an-ounce level in coming days.
NYMEX palladium futures got above $788 Friday before falling back on profit-taking, the firm says. Support came last week from a 19% year-on-year rise in Japanese passenger car sales, although Mitsubishi added that this may have been affected by a consumer rush to buy before a rise in the sales tax next month. Stronger auto sales bode well for palladium since it used for emissions-control systems.
“Supported by geopolitical tensions in Ukraine as well as the ongoing South African PGM (platinum-group-metals) mining strike, palladium could make further gains in the coming days, perhaps testing the $800 level. However, after its recent run, it is beginning to look a little overbought and any strengthening of the U.S. dollar could see prices drop back,” said Mitsubishi.