“Investor sentiment in palladium has reversed in November with net positioning in palladium futures contracts up 55% in the first two weeks of the month (as of Nov 15th) as investors have reduced short positions,” said ETF Securities in a note posted by Teresa Rivas of Barron’s.
Platinum and palladium will also benefit from positive spill overs from gold and silver in an extended negative real rate and range bound dollar environment. The improving global economy and stronger car demand, especially among European and Chinese consumers, will also drive industrial demand.
“NYMEX palladium inventories have been reduced 18% in November suggesting tightness in the current market supply – this may explain the recent rise in palladium which has jumped 19.5% so far in November to $742 (as of Nov 22nd),” according to the ETF Securities note featured in Barron’s. “Demand outlook for palladium remains strong along with other industrial commodities and strong Chinese auto sales continue (up 21% year over year as of October 31st).”
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