Palladium Market Update (March 26, 2012)

By Michelle Smith — Exclusive to Palladium Investing News

Palladium prices continue to be weak. The metal reached a year to date (ytd) high of $725 on February 29, but has failed to return to that level. This month, the metal hasn’t even managed to break $700, with its highest price being $673. Palladium is trading below the ytd average, which is a few cents shy of $680.

Despite the price conditions, ETF investors continue to be net buyers of the metal.

Negative sentiment has appeared to be gathering among futures, but this situation may be turning around. After  heavy losses in late March and early April, the latest Commodity Futures Trading Commission data, which was released on April 20, revealed an increase in net speculative longs. Though that increase was a paltry 16.8 oz, it was also viewed as positive that while shorts continued to grow, they did so at a notably slower pace than in recent weeks.

Standard Bank said that while the futures market positioning remains worrisome, the slowdown in momentum is encouraging.