HSBC still bullish on Platinum, Palladium

UNITED KINGDOM July 29 2016 11:31 AM     

LONDON (Scrap Register): The  recent rally in platinum group metals has accelerated and there could be more  gains in store after a possible bout of profit-taking, said HSBC.

“There  are a host of fundamental reasons why we believe the PGMs should rally. But we  are not sure if the fundamentals are any more or less compelling than when both  metals were trading substantially lower earlier this year,” said analysts at  HSBC.

“Rather, we think that as gold has moved ahead and then steadied,  some investor interest is heading into platinum. We also sense more positive  spread trading with gold. Palladium has wide and ongoing production/consumption  deficits, which are price supportive. We may see some near-term profit-taking  but we remain bullish longer term on both metals,” they added.