North American Palladium Ltd (New) PALDF

Platinum/palldium

[abner29]

Market Nuggets: Standard Bank Looks For Platinum Group Metals To Keep Trending Higher

19 November 2010, 11:15 a.m.
By Allen Sykora
Of Kitco News
https://www.kitco.com/

(Kitco News) -- Standard Bank says the general trend for platinum group metals remains higher, and it revised upward its palladium target and now looks for close to $780 by end of the first quarter. The bank calls for platinum to trade on a sustainable basis above $1,800 soon, not because of strong demand but due to the cost of production. “In contrast, palladium demand remains in place,” Standard says. The bank cites data showing palladium exports from Switzerland (where PGMs are stored) were 97,000 ounces in October, the sixth straight month of outflows and the largest export number since July. “For the greater part of 2010, the outflow of metal was inflated by metal moving to London vaults for loco London settlement,” Standard says. However, this movement largely ended in September. “Therefore, the strong palladium export figures in October…indicate demand for palladium remains strong despite the rising price of the metal.” There are some concerns, such as potential volatility from monetary tightening in China. Still, Standard concludes that “the general trend for PGM prices remain higher.”