Palladium Tests $2,400 As Automakers Revive Operations

Free $100 Forex No-Deposit Bonus

Palladium futures are testing the key $2,400 mark to start the trading week, and a new poll of economists anticipate the industrial metal to continue its upward trajectory. Despite crashing amid the market meltdown in March, palladium prices have been on a tear since April. But the situation might be a bit more complicated in the coming months.

September palladium futures rallied $93.90, or 4.09%, to $2,388.00 per ounce at 16:16 GMT on Monday on the New York Mercantile Exchange. Palladium had topped $2,400 in intraday trading before paring some of its gains. Year-to-date, the industrial metal is up nearly 25%.

Platinum, the sister commodity to palladium, is homing in on $1,000 to kick off the trading week. October platinum futures advanced $11.20, or 1.17%, to $967.20 per ounce. Although platinum prices are down 0.5% so far this year, they have soared 25% over the last three months.

According to a Reuters survey, palladium prices are forecast to rise gradually for the rest of 2021. Indeed, analysts and traders have reduced their projections for autocatalyst demand, but years of undersupply could be bullish for palladium. Analysts polled say the palladium market will stay in a deficit in 2021. As a result, palladium is predicted to average $2,050 this year and then $2,138 next year.

This is slightly down from a similar Reuters poll from April that called for averages of $2,100 this year and $2,150 in 2021.

Platinum, meanwhile, is expected to be oversupplied. Because of this, platinum is anticipated to average $832 this year and $913 in 2021. The poll from April pegged averages of $836 in 2020 and $945 for 2021.

In April, automobile sales plummeted to a 30-year low in the United States, and new car registrations plunged 24.1% year-on-year in June. As demand declined, automakers’ output levels fell, which contributed to palladium’s meteoric drop. Of course, investors also likely liquidated their metal assets. With the US and global economies recovering, analysts say the auto sector is crucial for both metals.

In other metal commodities, August gold futures skyrocketed $33.60, or 1.77%, to $1,931.10 per ounce. September silver futures soared $1.49, or 6.52%, to $24.335 an ounce. September copper futures edged up $0.005, or 0.17%, to $2.898 per pound.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.