Platinum and Palladium Bounce on Relief; Divergence Emerges: Platinum Deficit vs Palladium Surplus
Key Questions
Why did platinum and palladium bounce on July 2?
Both metals rose on relief from oversold conditions, with platinum up 2.47% and palladium gaining 3.8%.
What market divergence exists between platinum and palladium?
Platinum maintains net long positions and a structural deficit while palladium has flipped to net shorts amid bearish policy signals.
What is the outlook for platinum's structural deficit?
The WPIC forecasts the fourth consecutive deficit of 300k oz, supporting a more bullish fundamental view than palladium.
Why did UBS cut its platinum price forecast?
UBS reduced its forecast by $300 citing potential surplus risks despite current deficit conditions.
What technical signals remain weak for platinum group metals?
RSI readings around 39 indicate still-weak technical momentum even after the relief bounce.
Platinum up 2.47% on July 2, palladium +3.8% on relief bounce from oversold conditions. However, divergence: platinum maintains net long positions and structural deficit (WPIC 4th consecutive deficit, 300k oz), while palladium flips to net shorts with bearish policy headwinds (EPA delay, USITC ruling). UBS slashed platinum forecasts by $300 citing surplus risk. Macro headwinds from hawkish Fed persist. Technicals still weak (RSI 39).