NYMEX platinum and palladium follow gold lower

New York (Platts)--1Jun2006

Long liquidations pushed platinum and palladium futures lower on the New
York Mercantile Exchange, Thursday morning, as precious metals came under
downward pressure from a stronger dollar, led by gold.
The active July platinum contract was down by $26.80 to $1,220/oz at
10:06 EDT (14:06 GMT) as the market ignored what some traders described as
strong fundamentals earlier this week. In London, platinum was bid at $1,230
at 11:45 GMT (07:45 EDT) and traders pegged support at the $1,200/oz level.
Traders noted that there were some bearish forecasts and potentially bearish
news from Zimbabwe, with a black empowerment deal signed between Zimplats and
the Zimbabwe government.
UBS has reduced its short-term platinum price forecast. "We also lower
our platinum forecasts to $1,250/oz for the next three mopnths from $1,300 and
$1,350/oz in one and three months," UBS said. It also reduced its palladium
price forecast to $330/oz over th enext three months from $380/oz.
NYMEX palladium futures saw the active September contract slide $16.15 to
$335/oz at 10:16, despite palladium prices holding up reasonably well in
London. It had earlier traded down to $330.20.
A trader said with the dollar moving higher, all commodities are coming
under downward pressure on futures markets. "The longs are reducing their
positions, but it will probably attract some bargain hunters before too long."

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