Peter Hug Remains Bullish On Palladium And Rhodium
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(Kitco News) - Supply and demand fundamentals are in line to drive palladium and rhodium prices even higher, said Peter Hug, global trading director of Kitco Metals.
“I think palladium’s got more room to run and it’s strictly a supply-demand equation. There is some jawboning that the Russians may be withholding palladium from the market to try to squeeze the market even higher,” Hug told Kitco News. “But as we’ve cautioned over the past two years, we’ve been extremely constructive the palladium price ever since $800.”
Hug added that investors should be aware of the volatility of the palladium market and the possibility of $50 to $70 moves in corrections.
“We’re at all-time highs, but if we get above $1,600 and hold that for a couple of days, $1,700 to $1,800 is certainly in the cards,” he said.
Hug’s comments come as palladium fell from its 2019 high of $1,604 an ounce last Thursday to $1,451 an ounce on Monday.
On rhodium, Hug remains constructive with 10 to 15 percent more upside potential.
“We still think rhodium’s probably got another $400 to $600 in it but it’s going to be a choppy move higher, but rhodium supplies are also tight, and we think rhodium has the potential to see $3,700 to $3,800 before this move is over,” he said.