Continued ETF outflows preclude any lasting increase in platinum and palladium prices

Palladium is trading slightly down at around $680 per troy ounce this morning after already falling in recent days. One factor weighing on this precious metal which is used primarily in the automotive industry are the ongoing ETF outflows. 

Although holdings of palladium ETFs tracked by Bloomberg were reduced by only 1,600 ounces yesterday, 100,000 ounces have already been withdrawn since the start of the quarter, despite a considerable inflow at the beginning of the month. 

Outflows since the beginning of January now total 315,000 ounces, which is a good 10% of total holdings. At 9,200 ounces, yesterday again saw significant outflows from the platinum ETFs. The ongoing ETF outflows are likely to preclude any lasting increase in platinum and palladium prices, notes Commerzbank.