Following is an analysis from the bank on PGMs' performance:
"January saw average platinum and palladium prices for the month both rise by 5% in dollar terms vs. December. The similar percentage increase for each metal, in stark contrast to palladium's outperformance over the previous six months masked greater volatility in the palladium price during the past month.
The year began with the more volatile palladium realizing a steeper correction than platinum. As a result, palladium tested the $750 level from the 5th–10th as the dollar reached its strongest level against the euro since last September. Thereafter, palladium quickly rebounded; gaining $50 in just two trading days, a performance in dollar terms that was matched by platinum although this represented a markedly smaller percentage increase for the higher-priced metal. Over the remainder of January, palladium traded broadly between $790 and $825, with attempts to breach the top of this range meeting strong resistance.
Platinum, meanwhile, peaked at $1,846 on the 19th but substantial USD weakness then saw the price fall rapidly to below $1,800, a level at which platinum largely remained over the course of the month. However, the start of February has subsequently seen both PGMs rally back toward recent highs, supported in part by improved confidence in the global economic recovery, especially in the U.S.
In the U.S., sales were over 16.3% higher YOY in January and, though. . .flat compared to the prior month, this still led to renewed optimism about the gradual recovery across the industry. . ."