Citigroup raises palladium price forecast
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Citigroup increased its palladium price forecasts on Monday mainly because it said Russian stockspiles are much smaller than previously expected.

"We believe that Norilsk Nickel's stockpile is insignificant and that the government-held stockpiles have now dwindled to just over 1 million ounces," said analyst Fidelis Madavo in a research note.

"Our view is that based on new production alone, the palladium market is presently in deficit. Prices may rally strongly once the market realises that above-ground inventories may not be so large after all." Madavo boosted his average price forecast for 2005 to $198 per ounce from a previous forecast of $191, for 2006 to $265 from $206 and for 2007 to $353 from $231.