New York--Jan 13 "Market players noted that funds long palladium were becoming jumpy, because there have been "noises" from Russia about making palladium deliveries early this year.
However, Japan dealers say that they do not expect Russian exports to start until the second quarter of 1999, noting that further delays, like the ones seen in 1998 and 1997, may boost prices.
Nevertheless, one trader warned that the funds and other speculative longs were right to be skittish. "You won't know anything until the Russians suddenly look for bids of 100 kilogram lots, and then there could be a huge battle to sell and it could drop $50 in a matter of hours," he said.
"Palladium's got a horrible reputation for being a 'roach motel,'" he said. "Once you're in you can't get out." He said that "specs are taking down positions" over concern they will not be able to exit sizeable palladium positions over a short time period.
Platinum and palladium followed gold and silver to lower prices today. Apr platinum fell to a 2-week low of $353.50 per ounce and Mar palladium dropped to a 3-week low of $308.20 per ounce.
SETTLEMENT PRICES
--Feb gold (GCG9) at $287.0, dn $2.3; RANGE: 289.7-285.0
--Mar silver (SIH9) at $5.19, dn 5.5c; RANGE: 5.25-5.07
--Apr platinum (PLJ9) at $355.8, dn $1.2; RANGE: 357.9-353.5
--Mar palladium (PAH9) at $310.50, dn $4; RANGE: 312.0-308.20"
By Melanie Lovatt, Bridge News
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