Palladium Attracting Strong Speculative Interest

Kitco News reported that although palladium has seen some profit taking this week, it is currently the only precious metal that has gained in 2013 — it is up around 5 percent. As a result, it has been attracting the interest of speculative buyers.

As quoted in the market news:

It’s not a surprise that speculative interest is high in palladium as many analysts flagged the metal as their favorite to outperform. Jim Steel, analyst at HSBC, said his firm is ‘positive’ on the white metal, citing strong demand for palladium for its use in autocatalysts, particularly in vehicles in China and the U.S.

Analysts also cite a tight supply picture for the metal.

‘We’re still bullish on palladium. There’s not a lot of fresh news out on it, but both platinum and palladium are in supply deficits,’ said Mike McGlone, head of U.S. research at ETF Securities.

Both PGMs are one of the few commodity markets that are seeing speculative interest, said Bill O’Neill, a principal with LOGIC Advisors. Speculators have ‘run for the hills as far as commodities go. The exception is the PGMs,’ he said.

Click here to read the full Kitco News report.