Platinum and palladium prices likely to be supported by robust Chinese car sales

Considerable outflows are being recorded by the platinum and palladium ETFs along with the gold ETFs. The holdings are dropped down in each by over 150000 ounces since beginning of this month.

The prices of these precious metals are pressurized by this. Platinum slid below $900 per troy ounce on November 11, 2015 and palladium trades at $600 per troy ounce. Robust car sales might provide some support to the prices.

China Association of Automobile Manufacturers report that in October the volume of car sales is 1.94mn, rising by 13.3% on year on year figure. The purchase sales tax lowered by government helped increasing the car sales undoubtedly.

"Car sales since the beginning of the year are 3.8% up on the same period last year. If we extrapolate these figures to the year as a whole, nearly 20 million cars could be sold, which is just the same number as last year", says Commerzbank in a research note.