PRESS ROOM
Cyclical headwinds weigh on precious metals
Friday 21st October '22
The entire precious metals complex has been weighed down by gold particularly in the second half this year. Having said that, Metals Focus envisage both platinum and palladium to finish the year in a supply deficit. This is mainly due to a reduction in new mining supply from South Africa, the largest producer of platinum group metals (PGMs). Autocatalyst demand for both metals remains strong. Furthermore, in recent days, news has also emerged of a potential London Metal Exchange (LME) ban on Russian commodities. If this does materialise, it is most likely to impact industrial metals like aluminium, nickel, and copper. But with Russia being a key producer of PGMs, it is possible that markets perceive this development as a bullish signal for platinum and palladium as well.