Platinum and Palladium Futures Hit Limit Down Again, Short-Term Correction Risks Require Continued Attention [SMM Platinum and Palladium Futures Daily Review]

On December 30, the most-traded platinum contract PT2606 and the most-traded palladium contract PD2606 both closed limit down again following the previous trading session, with PT2606 settling at 589.85 yuan per gram, down 13.00%, and PD2606 settling at 447.45 yuan per gram, down 13.00%. In terms of futures trading volume: on December 30, PT2606 recorded a trading volume of 65,864 lots, while PD2606 recorded 40,695 lots; PT2606's open interest stood at 39,384 lots, a decrease of 2,411 lots from the previous trading day; PD2606's open interest was 20,169 lots, a decrease of 5,603 lots from the previous trading day. The recent price movements of platinum and palladium futures have primarily been driven by the excessively wide price spread between domestic and overseas markets, frequent risk control measures introduced by domestic and overseas exchanges, excessive release of the momentum from the previous sharp price surge in platinum and palladium futures, substantial short-term profit-taking, cooling risk appetite, and unstable sentiment among bulls as the New Year holiday approaches. Meanwhile, trading in the spot market has been relatively sluggish, creating a divergent pattern and significantly increasing the risk of a short-term correction.