The price of palladium has weakened from $2382 below $2200 last trading week and the current price stands around $2287. The attention of investors is focused currently on the US presidential elections and according to the polls, US President Trump’s rival, Joe Biden, leads.Fundamental analysis: The sentiment for palladium remains bullish over the long-run
Palladium has not seen a significant rise in price in the wake of the coronavirus crisis, as opposed to other precious metals like gold or silver. It is important to say that this precious metal is different from gold or silver in terms of investment.
The price of gold and silver usually rises when the economy is in a slump. Palladium price charts show the opposite – it decreases when the economy is down.
It is important to mention that palladium is a precious metal and industrial metal. As an industrial metal, palladium is mostly used in the automotive industry, where it acts as a catalytic converter.
The automobile industry has been affected significantly by the pandemic and many automobile companies have seen revenues drop by double digits. The price of this precious metal is currently below the $2300 level but sentiment for palladium remains bullish over the long-run.
Concerns about sluggish economic growth amid the ongoing pandemic continue to dominate the financial markets. The pandemic pushed U.S. hospitals to the brink of capacity as coronavirus cases surpassed 9 million and investors trading palladium should be a little more careful.
Risk aversion will likely prevail in the upcoming days which is not positive for the price of palladium. COVID-19 cases in the US continue to rise while Europe is not faring any better with this pandemic.
This is certainly not good for the economy and this could add another pressure to the price of palladium in the upcoming days. Palladium price is expected to continue to be supported over the long-run and could actually accelerate to the upside this November if the global situation stabilizes.
Drugmaker Pfizer announced that it could have a coronavirus vaccine ready in the United States by the end of this year. Vaccines and treatments are still under study and advancing, but there’s no magic solution yet.Technical analysis: Bulls are focused on breaking the resistance level at $2300Data source: tradingview.com
The current resistance levels are $2300, $2400 and $2500, $2200, $2100 and $2000 represent the current support levels. If the price jumps above $2300 it would be a signal to buy palladium and we have the open way to $2350.
Rising above $2400 supports the continuation of the bullish trend and the next price target could be located around $2500. On the other side, if the price falls below $2000 it would be a strong “sell” signal and we have the open way to $1800.Summary
Palladium has not seen a significant rise in price in the wake of the coronavirus crisis, as opposed to other precious metals like gold or silver. The price of palladium has extended its correction from the record highs above $2875, registered in February 2020. Despite this, there is no reason to panic and as long the price of palladium is above $2000 this precious metal remains in the “buy” zone. If the palladium price jumps above $2300 the next target could be located at $2350.