Palladium Prices Hit a 2-year High, But Watch for Ceiling

Palladium prices rose to a two-year high in April, making it the biggest gainer among precious metals. Last month we outlined some of the factors contributing to the palladium price rise: a growing auto sector; a strong South African currency; a falling dollar; and bullish sentiment across industrial metals. However, as prices continue to climb, it’s time to question how high prices can go. Despite a still solid outlook, there are some reasons to believe palladium prices could be nearing their peak:

Palladium prices hit 2-year high. Source: MetalMiner analysis of stockcharts.com data

Global Demand for Cars

Eighty percent of palladium demand comes from cars. China has the largest auto market, followed by the United States. Therefore, car sales in these two countries are very important for palladium’s demand outlook.

Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Car sales in the U.S. fell short of expectations in March, down 1.6% compared with March 2016. After two years of record sales, the auto industry seems to have hit a plateau. The U.S. industry might have to come up with discounts and incentives to continue to increase sales.

The post Palladium Prices Hit a 2-year High, But Watch for Ceiling appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/05/02/palladium-prices-hit-a-2-year-high-but-watch-for-ceiling/

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