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Carsten Fritsch, commodity strategist at Commerzbank, noted that precious metals prices have recovered.
Precious metals prices rise
“Silver is trading at $27.50 an ounce again. Platinum is at $940 an ounce and palladium is at $930 an ounce. While silver and platinum have so far only recovered some of their losses, palladium has fully recovered its decline and is now trading higher than it was at the start of the week and about $100 above the seven-year low hit on Monday.
“The price decline was overdone. Market participants appear to have taken a similar view, with the result that speculative short positions were probably covered in the days that followed. At the end of July, just days before the price decline, net speculative short positions in palladium were only slightly below the record level, according to the Commodity Futures Trading Commission.”
“The Commodity Futures Trading Commission will release the latest data this evening after the close of trading. This includes the week through Tuesday, the last price decline. So it’s entirely plausible that speculative financial investors’ short positions hit a new record high early in the week, as short-covering began.”
