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.