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Commerzbank: Palladium Has ‘Run Out Of Steam’

Kitco News

Palladium prices have “run out of steam” and now hold only a small premium over platinum, actually losing it for a short while, points out Commerzbank. Palladium has been more expensive since early autumn after prices rose sharply in 2017. Spot metal has fallen below the technically significant 100-day average and the psychologically important $1,000-per-ounce mark. “As if this were not enough, palladium was briefly cheaper than platinum again for the first time in four months,” Commerzbank says. “At the beginning of the year, palladium was still a good $150 per troy ounce more expensive than platinum. After flying high in the past two years and reaching a record high of $1,140 in mid-January, palladium now appears to have run out of steam.” Much of the selling in palladium was likely profit-taking, the bank adds. Around 9:30 a.m. EST, spot palladium was down $3.30 to $984.10 an ounce. The 100-day average stood around $1,012.15. Spot platinum was down $2.60 to $975.90.

By Allen Sykora of Kitco News;


TDS Calls Dollar Bounce ‘Bear-Market Correction’

Thursday February 08, 2018 09:40

TD Securities says the recent bounce in the U.S. dollar is probably a correction in a bear market. The euro has fallen as far as $1.22122 so far Thursday after peaking at $1.25378 in late January. “A bear-market correction of the dollar is in the works, as markets begin to chew through some excessive valuations and lopsided positions,” TDS says. “Besides positioning, the near-term fundamental picture has also improved for the greenback, though we expect any bounces are likely to be short-lived and offer better levels to sell.” Metals traders closely monitor moves in the dollar since base and precious metals alike tend to move inversely to the U.S. currency.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.