Platinum group metal consultant Johnson Matthey forecasts that a drop of Russian palladium sales in 2012 to 250,000 ounces from over 1,000,000 ounces in 2011 will drive palladium supply into deficit this year. Swiss platinum imports hit a 4-year low in April on the back of reduced supply from South Africa.
The week ahead
News that Greece’s New Democracy party, which supports the bailout plan and the Euro, ranked first in opinion polls released on the weekend may help to stabilize markets this week. However, the continued deep discord between Eurozone leaders on a host of critical issues are likely to keep the markets on edge.
On the data front, further evidence of the growing divide between European and US growth is likely with the release of manufacturing (PMIs), while later this week the U.S. nonfarm payroll report will be scrutinized to see whether U.S. employment conditions remain on an improving trend.
Platinum, palladium and silver, in the near-term, will likely continue to trade positively with perceptions of the sustainability of the recovery of the global industrial cycle, while gold will benefit from any signals of the need for further quantitative easing by the Fed or ECB.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
