Citi lifts short-term platinum, palladium PT as gold rallies

Oct 14 (Reuters) - Citi Research lifted its three-month platinum and palladium targets to $1,550 and $1,350, citing gold's rally and heavy U.S. inflows ahead of a critical-metal review deadline.

The investment research arm of Citigroup C.N had previous estimates of $1,300 and $1,150, respectively on the two metals.

"PGM (platinum group metals) prices rose on strong investment demand, driven by a record gold price and continued metal flows to the U.S. from ROW (rest of the world) ahead of the October 19 Critical Minerals S232 deadline," it said in a note dated Monday.

U.S. President Donald Trump signed an order in mid-April, directing Commerce Secretary Howard Lutnick to begin a national security review under Section 232 of the Trade Expansion Act of 1962 on all U.S. critical mineral imports.

Platinum group metals were excluded from the U.S. tariffs in April, but the probe into potential new tariffs on U.S. imports of critical minerals amid Washington's wider tariff war, extends the period of uncertainty.

Citi Research also said it remains cautious on the near-term outlook for PGMs, noting that the risk-reward profile for going long on these metals has deteriorated, following recent price spikes and the approaching deadline for Section 232.

Spot platinum XPT= was trading at $1,652.40/oz and spot palladium at $1,465.0, as of 0716 GMT.

Platinum and palladium are up 83% and 62% so far this year, respectively.

"A no-tariff scenario could lead to reverse metal flows from the U.S. to ROW, easing the physical market tightness and weighing on prices," Citi Research said.