SP Angel: Palladium Prices Remain Lofty On Strong Auto Demand
Palladium,underpinned by demand from the auto sector, has hit a fresh record high of$1,179.40 an ounce for spot metal. “Pollution-limiting catalytic converter demand in China isboosting palladium consumption, drawing prices 9% higher this year,” says commoditiesbrokerage SP Angel. “The Asian nation is on a mission to reduce smog emissions,with tougher standards meaning car makers are using more of the commodity.Global palladium production is falling short of the robust demand....Hedge fundsare also wagering on an extended rally, with the biggest long positive bet onthe metal since early March.” Analysts note that almost 70% of demand comesfrom the auto industry, so strong car sales are helping to insulate prices fromthe “faltering” global growth hampering that is many industrial commodities.“While the metal is at threat of substitution from its sister metal platinum,manufacturers need 18-24 months for changes to take place, protecting near-termdemand,” analysts add.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: Fed Fund Futures Trim ExpectationsFor Rate Hikes
Monday November 19, 2018 09:09
The Federal funds futures are showing that traders in financial marketsare scaling back expectations for Federal Reserve rate hikes next year, saysBrown Brothers Harriman. “Implied yields on the December 2020 contract now suggestbarely 50 bp [basis points] of tightening will be seen,” BBH says. “Thatincludes a 25 bp hike in December, and so markets have basically taken back thesecond hike next year that had been fully priced in at the beginning of thismonth.”
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.