Palladium prices may rise further to $725 an ounce

UNITED STATES July 15 2016 5:25 PM     

NEW YORK (Scrap Register): TD  Securities sees more upside still in the cards for palladium even after it  rallied some 24% from the late-May lows to where it left off in trading on  Wednesday.

“We would not be surprised to see palladium test the highs  near $725 an ounce recorded back in October 2015,” said analysts at TDS  says.

The metal rallied 2.5% on Wednesday due to increased risk appetite  and speculation about more monetary stimulus in China.

Given that  Chinese auto sales which drive palladium auto-catalyst demand have picked up  already in recent months, it is reasonable to assume that new stimulus could  accelerate this trend and tighten this market.