Palladium started out on the right foot this year. Since the beginning of February, palladium has surged almost 20%. Supply concerns due to the South African platinum miners’ strike and fears of sanctions against Russia, the world’s largest producer of the metal, might have helped push prices higher.
We already warned in March that palladium was showing upside momentum and that prices moving above $800 would be a bullish signal that buyers should consider. Since then, palladium has continued trending up, reaching $829 per ounce last week, an almost 3-year high.
Moreover, trading volume has been heavier during the up days, which suggests more bullish than bearish traders are pouring money into palladium.
What This Means For Metal Buyers
We expect palladium to remain strong throughout the rest of 2014, likely trending higher. We hope that Palladium buyers are already hedged for the balance of the year by this point.