Palladium futures continue to rally as the XPDUSD pair reached a high of 1125, 12 points lower than last year’s high. Will the upward trend continue? The following technical prediction reveals.
23 October, OctaFX – Palladium futures rallied Monday, with concerns surrounding supplies from Russia, following U.S. President Donald Trump’s plan to pull out of a nuclear treaty with Moscow, lifting prices to their highest settlement since January, when prices hit a record.
Palladium May Soon Worth More Than Gold
The metal, which is widely used in the pollution-control catalytic converts on gasoline-powered vehicles, has climbed above what R. Michael Jones, chief executive officer of Platinum Group Metals Ltd., refers to as an “important glass ceiling” on the charts.
“The factors for palladium’s rise are all still in place—growing car sales around the world, popular small gasoline engines with palladium catalysts, big American [sport-utility vehicles] on gas with palladium, and South African platinum mine closures in the works cutting palladium production despite the good price.”
He pointed out that platinum is the main metal at the South African platinum mines, while palladium is a by-product.
XPDUSD Technical Prediction
Palladium was the best performing metal in 2017, gaining by more than 40%. It reached a high of $1137 per ounce. This year, it dropped to $830. In August, the decline ended and the metal started moving up.
Today, the XPDUSD pair reached a high of 1125, 12 points lower than last year’s high. The double EMA shows that the pair could continue to move higher. The commodities channel index is currently at 282, which is overbought but a sign that the pair could continue moving up.
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