FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1730
BTC/USD
43 916.48
GBP/USD
1.3661
USD/JPY
109.4855
USD/CHF
0.9284
USD/CAD
1.2816
EUR/JPY
128.4265

Palladium skyrocketed at $2,700


18 March 2021

Palladium is back in the spotlight as the key Resistance at $2,500 failed to prove itself as the substantial 7-month barrier for palladium prices, but instead the asset continues to attract more buyers above $2,500. In the meantime, today we have also seen the breakout northwards of the 15-month triangle seen on the plummet of the price from $2,879 amid global lockdowns.

Along with the majority of precious and industrial metals, palladium also found support on surging Treasury yields as markets are losing trust and confidence in the Federal Reserve being able and willing to fight inflation. The US Federal Reserve on Wednesday said the US economy was on track for its fastest expansion in nearly 40 years, but the central bank pledged to keep its ultra-easy monetary policy stance despite expected inflationary pressure.

Hence similarly to gold, palladium found support as it is seen as a hedge against inflation, but rising Treasury yields have challenged that status as they translate into a higher opportunity cost of holding bullion. However  the significant difference with gold is the physical demand of palladium as an industrial metal and  a component of electric and hybrid car engines. The rally seen this week is also due to some reports from the Russian mining giant and the world’s largest palladium producer Nornickel said that its nickel, copper, platinum, and palladium output could be 15-20% short of its original guidance.

As Eugen Weinberg, head of commodity research at Commerzbank, said: “the price could make further gains in view of the tight physical supply situation. Indeed, the situation could soon tighten even further as sales of new cars are likely to be given a boost when the corona-related mobility restrictions are lifted in Europe, which is expected to happen soon.”

Palladium is currently outside the Bollinger Bands pattern at the $2,740 area looking overbought in the near and medium term. However the weekly spike seen this week has turned the so far neutral Palladium outlook into a positive one as it boosted positive momentum higher.

The daily RSI entered into the overbought territory, while MACD lines have spiked higher. But despite the near term spike of positive bias, neither of these two indicators has reached a peak yet, suggesting that the odds of a potential retest of record highs at $2,879 (key psychological level at $2,900), are rising. In the meantime the weekly outlook is turning positive as well. Hence the weekly closing tomorrow could be key as it could trigger the attention to fresh record highs for palladium.

On the flipside, selling pressure could resume in the near term due to the already overbought condition of the asset, with support area at $2,480-2,520. Next immediate Support is at 20-DMA, i.e. $2,390. If sellers manage to take over palladium and drift the asset below the latter then we could see a resumption of the 7-month ranging market within the $2,120-$2,520 area.

#source

Related

US Markets lost major support, Asian Indices are melting
US Markets lost major support, Asian Indices are melting

Global markets closed last week on the back foot, and no significant positive factors emerged in Asian trading, increasing the flight to safety. The Hang Seng lost...

20 Sep 2021

US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021

Gold is anxiously waiting for the US inflation data
Gold is anxiously waiting for the US inflation data

Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels...

14 Sep 2021

Here Is Why Stock Futures Are Trading Lower
Here Is Why Stock Futures Are Trading Lower

Despite a week of doom and gloom in the stock markets, futures in the United States are still trading lower. Since February, the S&P 500 has been on its longest...

13 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.