Platinum group metals to rise with Gold in coming weeks: TDS

UNITED STATES May 10 2016 8:36 PM

NEW YORK (Scrap Register): TD Securities sees promise for platinum group metals. Analysts look for the PGMs to rise with gold in the coming weeks due to uncertainty surrounding U.S. interest rates, the June 23 vote on the U.K. leaving the European Union, and supply risks. 

Strong auto demand in the U.S., Europe and Japan should also boost PGM consumption, TDS says. TDS, which calls for robust supply deficits in platinum and palladium this year and next, looks for platinum to average $1,150 an ounce and palladium to average $750 in the final three months of 2017. 

However, TDS added, “the path to these average levels is unlikely to be a smooth one” as these metals track gold and react to economic news. In fact, PGMs could retreat with gold in the second half of this year if there is an increased risk of a Federal Reserve rate hike. But as above-ground inventories drop, the persistent deficits should again help lift PGMs…into 2017.”