Palladium tumbles nearly 6.0%

Palladium futures fell sharply from four week high to $2,100 per ounce as the dollar regained some strength following disappointing US CPI report, which pointed out that major central banks will continue raising interest rates and maintain them elevated, which is not a good sign for industrial metals. Also demand for palladium, which is widely used as automobile catalytic converter, did not yet return to pre-pandemic levels, however the market remains in a deficit partially due to sanctions imposed on Russia.

Palladium is trading around 38% below highs from March. Price pulled back sharply today as buyers again failed to break above major resistance at $2285.0 per ounce, which coincides with 61.8% Fibonacci retracement of the last upward wave. If sellers will manage to uphold current momentum, support at $1952 may be at risk. Source: xStation5