Precious metal prices were sharply lower across the board yesterday and dealers forecast further volatility in the platinum and palladium markets but saw the gold price trying to settle around present levels.
A rush of selling by the professionals in Tokyo's Tocom futures market wiped out an investor-driven limit up move and erased the gains made in platinum and palladium during the first two days of the week.
The Tocom palladium market rose by its daily limit five days in a row before the overnight oscillations. The platinum group metals (PGMs) have been in turmoil for most of the year as Russia, the biggest supplier of palladium and second largest exporter of platinum, has been unable to deliver since last December due to administrative problems.
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Dealers said the price moves were the outcome of thinking that as soon as Russia began delivering, prices would collapse.
"The vast majority are on the wrong side of the market. Only about 40 per cent of the (Japanese investors) in palladium have covered their positions," a dealer said.