MasterMetals: Palladium

Showing posts with label Palladium. Show all posts

March 3, 2022

#Palladium jumps as #Russia intensifies #Ukraine invasion

#Palladium jumps through resistance levels as a cloud forms over the metal's future supplies given #Russia #Sanctions.

https://www.tradingview.com/x/oqVWYYCu/

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MasterMetals

@MasterMetals

May 17, 2021

#GOLD: Getting ready to break out —UPDATED! $GLD

Tags: Charts, COPPER, GDX, GDXJ, GLD, Gold, Metals, Mining, mining stocks, Palladium, Platinum, PPLT, SIL, Silver, SLV

GOLD looking to break through the 200 Day Moving Average.

The 20 Day Moving Average has also crossed the 100 Day Moving Average to the upside portending better times ahead for the "Barbarous Relic".

That’s what it looked like this morning May 17, 2021 before Gold broke out.

This is what it looked like after:

Looking bullish!

See more Metals Charts here:

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MasterMetals

@MasterMetals

January 24, 2020

#Palladium, #Rhodium, #Platinum #PGM’s

Tags: EV, Gold, Palladium, Platinum, Rhodium, Russia, South Africa

LONDON (Reuters) - A rally in rhodium, a precious metal used to reduce vehicle emissions, has exploded into high gear, with surging demand and an uncertain supply outlook pushing prices up 40% in just three weeks to near record highs.

Rhodium RHOD-LON is used to neutralise nitrous oxides in car exhausts, and increasingly stringent emissions regulations, particularly in China, are forcing auto makers to use more of the metal.

Demand is expected to outstrip supply this year and supplies are being disrupted by power outages at South African mines which produce more than 80% of mined rhodium.

Prices have rocketed to $9,975 an ounce from $6,040 at the start of January - ten times their level through the mid-2010s and within a whisker of an all-time high of $10,050 in 2008.

"It's being driven by insatiable demand from Asia," said Scotiabank analyst Nicky Shiels.

"There is also a supply side trigger with power cuts in South Africa. That injects a certain amount of fear into the market and in a small, opaque market that can have a huge impact," she said.

(Graphic: Rhodium, palladium and platinum prices - here)

June 14, 2017

#Palladium - Hitting 16-year highs - +40% ytd

Tags: Palladium, PGM, Platinum

"near-term pull-back likely before further gains in late 2017"

Below is a comment on Palladium from Metals Focus, June 13, 2017:

Attachment 1 shows the long term chart of Palladium and attachment 4 the 1-year chart. Attachment 5 is the Point&Figure chart which shows how volatile this precious metal is.

Palladium has posted a remarkable rally over the last three weeks, hitting a 16-year high of $928 on 9th June, which represents a 23% increase from its recent trough in April. Moreover, with platinum's lacklustre price performance over the same period, the spread between the two fell to as low as just above $30 last Friday. Even though the rally soon lost momentum, palladium has so far managed to consolidate in the high $800s, making it by far the strongest performer in the precious metals complex.

Palladium's robust gains year-to-date have been assisted by a severe squeeze in physical liquidity in Western terminal markets. In spite of sizeable above-ground stocks (estimated at 15.3 Moz at end- 2016), signs of market tightness have emerged since late 2016; the market has seen moves into backwardation and securing metal in the spot market has been challenging. More recently, this backwardation in the Nymex futures has deepened, while inventories at the exchange now amount to a mere 42koz, their lowest level since 2003.

We believe that the biggest reason behind such tightness has been strong speculative demand for physical metal from Asian entities. Feedback from our field trips indicates that these heavy purchases have been fuelled by bullish price expectations as well as confidence that palladium fabrication demand will continue to strengthen in the coming years. This in turn has resulted in a major shift of stocks out of Western terminal markets.

Meanwhile, as palladium prices broke out above technical resistance levels, speculative interest from short-term investors seems to have picked up notably. As of 6th June, net managed money positions in Nymex futures stood at 1.18Moz, almost double their end-2016 figure and only a fraction below the peak recorded in August 2014 (when palladium last surpassed $900).

Looking ahead, as the palladium market is forecast to remain in a sizeable deficit in the foreseeable future, further price strength seems still justified. However, given the scale of the recent rally, we would caution that the white metal is vulnerable to heavy investor profit taking. After all, despite an apparent lack of short-term physical liquidity, palladium bullion stockpiles remain ample at present. More importantly, growth in global vehicle production is likely to slow down this year. Although the notable weakness in key car markets such as the US and China in recent months has so far little dampened investor confidence in palladium, this poses a downside risk to prices.

Ongoing macroeconomic uncertainties also cannot be ignored, which could weigh on investor sentiment towards industrial metals in general. Already in the US, expectations about economic growth have been scaled back, amid growing political turmoil and disappointing macroeconomic data. Related to this, we retain the view that a correction in US equities is looking increasingly likely.

Against this backdrop, we believe that $928 may well represent the peak for 2017. In the near term, the recent pull-back in prices may well continue, before renewed strength emerges later in the year.

Moreover, given that the palladium market is far smaller and hence less liquid, this renewed strength is likely to be accompanied by continued high price volatility".