Palladium News: XPD/USD extends gains above $1,900 amid South Africa power cuts, US-Sino talks
|- Prices of Palladium have risen in the past eight days.
- Hopes for a Sino-American trade resolution have supported the metal.
- Palladium's daily chart is pointing to oversold conditions.
The prices of Palladium (XPD/USD) has hit new historic highs above $1,900, rising for the eighth consecutive day. Since hitting a temporary bottom at $1,675 in mid-November, the metal's value has been on the rise in all but three of the past 21 days.
The long term uptrend for Palladium stems from its growing demand for pollution control devices needed in cars and trucks. Its price has long surpassed gold (XAU/USD). The metal is also used in catalytic converters for the automotive industry, as well as by dentists and jewelers.
In the past several, optimism about the global economy has been a driving force. After signs of a slowdown, recent US, European, and Chinese data have turned up. Moreover, reports that Washington may postpone an additional round of tariffs against Beijing is also helping.
And the most recent surge comes as South African power cuts forced miners to halt operations. The electricity issues – going on for around a week – have pushed prices of other precious metals higher.
Palladium Metal Price Today
Even when zooming out to the broad picture of the daily chart, XPD/USD looks overbought. The Relative Strength Index is above 70 – implying a potential downward correction.
On the other hand, Palladium prices are trading within an upward channel, providing scope for continuity in the medium term. Momentum remains robust to the upside – matching the highs of September.
Support awaits at $1,825, October's high, followed by $1,775, $1,735, and $1,675. Resistance is at the psychologically significant level of $2,000, followed by $2,050.
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