The Wall Street Journal reported that while palladium prices have “struggled for direction” over the last couple of months, longer-term investors are now increasing their exposure to the metal as a result of growing demand and limited supply.
As quoted in the market news:
‘There is very good reason for the palladium market to be very long, and it is still very long relative to history,’ Mr. Winship said. ‘I would be concerned if investors were long and the market was in surplus.’
Others tend to agree.
‘Palladium’s recent weakness is viewed as a corrective phase within a bullish trend,’ precious-metals strategists at UBS AG wrote in a note to clients this week. ‘The risk is for resumption of upside.’