UNITED STATES June 26 2017 8:35 PM
LONDON (Scrap Register): TD Securities looks for palladium to give back some of the metal’s roughly 30% gain so far in 2017. The bank previously was one that called for prices to rise, and the metal did so, hitting a 16-year peak.
“The talk of persistent deficits, a flat yield curve, the slow movement of above-ground inventories to the market, technical and aggressive long positioning were all factors contributing to the rally,” TDS added.
But with palladium failing to hold on to its break through the $909.88 an ounce mark, slowing autos in China and the U.S. (which are sources of demand), a turn in positive spec long momentum, a steepening yield curve and the apparent flow of sponge to be refined into ingot all suggest there is a risk palladium gives back some of its recent gains.
As a result, TDS said it favors a short position in spot palladium for now.