13th June 2017

 Palladium finished higher again on Monday, but failed to break above the $910 intraday high set on Friday. Nevertheless, the complex still finished with a respectable $8/ounce gain and finished at a 16-year high in the process as the rally continues to charge ahead in full force. We re-iterate our previously expressed view that the weaker demand backdrop from automotive catalysts should eventually get picked up in palladium valuations and trigger a rather precipitous fall in prices. Consequently, we would be reluctant to chase the rally at this stage, tempting as the charts look.