Since the breakout of the consolidation triangle on July 9, 2020 at $ 1,975, the palladium future has increased by a further 17 percent. The weak US dollar, positive signs of recovery from the automotive sector, and rising gold and silver prices are underpinning the existing upward trend.
All-time high at the end of Feb 2020
On July 24, the $ 2,300 mark was regained with significantly higher sales, which also meant a three and a half month high. The all-time high at the end of February 2020 at $ 2,770 is therefore within reach and is “only” 18 percent away. Initial resistance can be seen in the $ 2,350 to $ 2,400 range.
Palladium outperformance against gold continues
The gold versus palladium spread continued to grow after the break above the trend line at 1.10 and is currently trading at 1.20. That means 1.10 ounces of gold were still needed to buy an ounce of palladium two weeks ago. Currently, however, 1.2 ounces are needed, which corresponds to an outperformance against gold of almost ten percent.