UNITED STATES July 15 2014 2:32 PM
NEW YORK (Scrap Register): Japan based Mitsubishi Corp. remains upbeat on platinum group metals.
“Platinum tested its highs for the year to date of $1,519 an ounce once again last week and made modest gains against palladium, despite the latter being on a sharp uptrend,” said analysts with Mitsubishi.
“Although investors may seek to book profits at these levels, we believe platinum could push still higher in the short to medium term as it eyes last year’s August high of $1,555 an ounce.”
Palladium, meanwhile, posted 11 straight days of gains before a slight pullback in the middle of last week. Some investor exhaustion may now be setting in. Still, the metal hit a 13-year high.
Mitsubishi remains bullish on palladium given the shortfall in mined supplies this year, strong auto-catalyst and investment demand and the current support coming from speculative investor interest in the light of geopolitical uncertainty in the Middle East and economic uncertainty in the eurozone.
“The next obvious resistance level is at $900 an ounce, a psychological, rather than a technical level, but one that may possibly serve as confirmation for palladium’s upwards trend into the medium term,” said Mitsubishi.