Palladium Price Outlook: This PGM Set To Shine?

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Palladium prices have increased 16 percent since the beginning of February. Palladium is the best performer among precious metals since 2011 and it is close to reaching the record levels it recorded in spring 2011.

The automobile sector’s good performance and supply concerns due to the South African platinum miners’ strike might have helped move prices higher.

Palladium prices since 2013

Palladium CME spot price since 2013.

Last month we commented that palladium was showing upside momentum and that prices moving above $800 would be a bullish signal. Last week, palladium closed at $805 per ounce, recording a two-year high.

Moreover, trading volume was heavier during the up days, which suggests that many traders are bullish. Heavier volume in the up days (in green) while lighter in the down days (in red) is usually a good confirmation of the upward move.

What This Means For Metal Buyers

We expect palladium to remain strong through the rest of 2014, likely trending higher. How high can palladium prices go in 2014? We don’t know – no one knows. However, we believe this is a good time to hedge your palladium purchases and take risk of the table.

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