NEW YORK (Scrap Register): Palladium prices have been able to shake off outflows from exchange-traded funds so far during the New Year, said Commerzbank.
“At 80,500 ounces, the palladium ETFs tracked by Bloomberg…saw their most pronounced daily outflow since the end of October 2015 yesterday, as well as their third-highest of all time,” the bank added.
Since the start of the year, total palladium ETF holdings have declined 103,000 ounces. At a good 1.6 million ounces, they are currently at their lowest level in nearly seven years and have fallen by nearly half from their record high in August 2014, Commerzbank noted.
“Even though the palladium price has decreased slightly to $750 per troy ounce this morning, palladium still costs 10% more than at the beginning of the year. In other words, the palladium price has become detached from the trend affecting ETF holdings,” they added.
“This is something that could already be observed at times last year. What is more, because speculative financial investors are not betting excessively heavily on rising prices at the moment, palladium presumably found good support from the booming automotive sector in recent months,” analysts added.
