Palladium and platinum better used for recovery than gold – Deutsche Bank
From a high level perspective on the structure of the market, palladium and platinum are closer to traditional commodities than gold and silver, although they can sometimes be mentioned in the same breath. In the coming months, Deutsche Bank economists prefer a long palladium and platinum basket over gold.
See – Gold Price Analysis: XAU / USD To Test $ 1900 Amid Data Disappointments – TDS
The exuberance of gold investors is insufficient to boost the premium to its fair value
“An alleviation of semiconductor shortages triggering auto plant shutdowns would be helpful for both palladium and platinum, but even more so for palladium. Platinum’s reliance on investment and demand for jewelry is less useful as these categories as a whole may be relatively unchanged from year to year – a slowdown in ETF accumulation and a recovery demand for jewelry in China is offset.
“The positive momentum in US fixed income for gold begins with stronger inflation impressions, an uninterrupted trend of higher inflation expectations and a large US employment gap. The result was a hesitant T-bill selloff and a resumption of falling real interest rates, a repeat of one of the main positive drivers for gold in 2020 (and January 2021). While gold enjoys short-term support in this way, we believe it has limited room for maneuver. “
“Speculative demand is unlikely to inflate the gold premium to its fair value almost as dramatically as it was in 2020, and may well decline again with increasing odds of a decline in the third quarter.”
“We prefer a long palladium-platinum basket to gold.”