Palladium: Speculative Highs and Reminders of Performance
While Gold and Silver are within the highest elements of apex values, Palladium has seen a speculative buying storm also take hold the past month, but it remains far below record price levels.
Palladium as of this writing is near the 1,510.0 USD level with fast trading conditions being seen. The precious metals sector has seen a frenzy of buying occur recently and Palladium has seen momentum upwards develop also. Palladium was trading near the 1,210.0 price one month ago.
However, before day traders without experience decide to jump into buying positions of Palladium, adding this to their basket of speculative buys, they should know that the all-time high for Palladium happened in March of 2022 when the 3,500.0 level was briefly penetrated before falling steeply and was essentially trading at 1,500.0 by February 2023. The buying surge from 2021 into 2022 was fueled by a buildup of industrial demand, and then growing concerns regarding the Russian invasion of Ukraine.
The 1,500.0 USD Level in Palladium
Optimistic buyers of Palladium will point to the historical proof that the commodity has traded at values twice its current price. The buying surge in the metals sector which has grown in muscle in recent weeks could certainly help Palladium continue its trend higher and it could be argued - allow for the record prices to be challenged once again. However, the ambition of doubling the price of Palladium is a dream best left to fantasy. The 1,500.0 will work as an intriguing barometer today.
Speculators who want to buy Palladium as Gold and Silver traverses highs need to consider the possibility that industrial demand is strong but known in Palladium, and that the frenzy for the metal may start to evaporate if and when overexuberant buying erodes. The ability of Palladium to challenge highs not seen in two and half years is an accomplishment however that should be taken seriously. But what day traders need to understand is that Palladium is part of a speculative buying environment, which may not represent a shift in actual demand by industry or the public.
Palladium Wagering and Staying Realistic
Certainly Palladium has seen higher values before. Traders who want to claim that Palladium has been a sleeping giant that has been woken again are free to proclaim this and remain buyers.
- More cautious speculators may want to consider the notion that Palladium’s recent move higher in recent weeks is part of a game being played in commodities that has been seen thousands of times before.
- Yes, Palladium could continue to climb as part of a speculative wave in the precious metals, but it could also start to run into stiff headwinds that prove that the velocity upwards will soon see a reversal lower.
- Traders are urged to be careful and use risk management fully.
- The near-term will certainly remain intriguing in Palladium as the current speculative landscape is demonstrated.
Palladium Short-Term Outlook:
Current Resistance: 1,517.0
Current Support: 1,495.0
High Target: 1,580.0
Low Target: 1,460.0
Top Forex Brokers
Ready to trade our weekly Forex forecast? Check out our list of the top 10 Forex brokers in the world.