📈 Palladium Gains Over 3%

Fear of Sanctions Drives Price Increases 🚀

Palladium, although less popular among retail investors, is gaining over 3% today. In recent days, palladium prices have clearly been rising, aligning with the broader upward trend in the precious metals market.

Just this week, palladium contract prices have increased by over 6% as investors are increasingly eager to invest capital in assets considered safe, also driving up the prices of gold, silver, and platinum.

The rise in the value of precious metals is strongly influenced by dovish market expectations regarding upcoming interest rate cuts in the USA and the global increase in debt in major economies. Besides monetary factors, the key to today's increases is the risk of new sanctions imposed on Russia — a country responsible for nearly half of the global production of this metal. Concerns about restricted access to Russian palladium are increasing supply pressure, consequently driving up prices in global markets. If geopolitical restrictions are implemented, shortages may become a reality, potentially extending the current upward trend.

The current market situation indicates growing tension between increasing demand and supply constraints. The automotive industry, the main consumer of palladium used in catalysts, may face rising production costs, which in the long term will translate into the prices of new vehicles. For investors, this means increased price volatility but also potential opportunities for short-term gains. In the medium- and long-term perspective, the key will be whether producers find alternative sources of the raw material or start replacing palladium with cheaper metals, such as platinum.

PALLADIUM (H4)

Source:Xstation
Palladium prices have recently returned to the medium-term upward channel, correcting the recent rise to ATH from the previous month. What can be noted is the clearly forming head and shoulders pattern — which is a potential trend reversal formation. For this formation to have a chance to materialize, the price must break through the base of the formation and the support zone at around 1050 dollars. The realization of the formation may allow testing levels of 980 and 890 dollars, where the nearest supports and Fibo levels are located. However, if the formation is broken and buyers take the initiative, the direction will be a test of resistance at local highs — 1200 dollars, where the FIBO 23 level is also located.