Platinum has edged higher lately but remains range-bound; however, there are signs of improving physical demand, Mitsubishi says. Meanwhile, year-end activity could help palladium. “There was evidence of greater physical demand in China as the SGE (Shanghai Gold Exchange) premium ticked up to over 5%, perhaps as seasonal pre-Chinese New Year buying starts to kick in,” the firm says. Palladium this week regained the 50% retracement of the three-month downtrend from September to November, but there is one worrisome technical signal in the short term. “The 200-day moving average is looking to cross above the 100-day moving average, and the momentum indicator is moving below the moving average line, bearish signals that could imply a short-term reversal,” Mitsubishi says. “However, beyond the immediate term, a daily close above $821 would likely open up a new trading range to $843 and eventually $869. While we are positive on the fundamentals for the metal, the approaching Christmas holidays could mean relatively subdued physical demand in the weeks ahead, meaning that investment flows and macroeconomic conditions will largely drive prices. Investor year-end squaring and window dressing could be positive for palladium, which has been the best-performing of the major precious metals in the year to date.”
