Platinum and Palladium Price Outlook Uncertain

IBTimes reports that despite recent gains in platinum and palladium prices and ETFs the the Heraeus analysts are still skeptical about the futre of the platinum group metals.

The market news is quoted as saying,

Rising investment demand has also driven the palladium price higher in the last couple of weeks as well, the price recently hitting $817 per ounce – a three-month high. However, as with platinum, Heraeus questions the durability of the palladium rally. US car sales were unexpectedly bad in May – falling by 4% – owing to the country´s deteriorating economy and rapidly rising petrol prices. Moreover, China’s automobile market – which has grown rapidly in the last two years – is also slowing significantly. 1.04 million vehicles were sold in China in May, corresponding to a decline of 10% year-over-year. Experts expect the demand for palladium to fall significantly unless there’s a turnaround in the Chinese and American car markets soon.

For the complete market news, click here.