Palladium has rallied 20% in the last eight trading days, giving hope to investors who have experienced negative returns for three consecutive years.
Palladium’s price has dropped 33% over five years and 48% over the last two years, but the recent rally has put the metal into the black for 2024 by about 1%.
The metal is trading at $1,090 an ounce, up from $900 an ounce, where it began trading last week.
The breakout begins
Gareth Soloway, chief market strategist at Vertified Investing, said he believes Palladium is in for a “monster” breakout and is looking for confirmation as the metal moves higher.
“It’s rarer than gold, but it’s trading at $1,000 compared to gold at $2,500,” he said. “Go back multiple years to 2019 and it was trading at $1,500. Think about all the inflation that has occurred since 2019, which is a lot, and now you have it trading all the way (at $1,000 an ounce). To me, that’s opportunity.”
Soloway said he is targeting a price of $1,500 within 12 months.
Dylan Figueiredo, head of multi-asset management at Swiss Investment Firm Haute Capital Partners, said he is looking for potential resistance at $1,235 an ounce following Palladium’s recent breakout. He noted automotive demand is expected to increase in the future and the metal appears to be holding strong above its key support level.