Palladium Price Analysis: XPD/USD conquers $3,000 level for the first time ever
|- XPD/USD reaches the $3000 mark for the first time on record.
- Overbought conditions on the daily chart call for a correction.
- Buy-the-dips are likely to be a key strategy for Palladium.
The buying interest in Palladium (XPD/USD) remains unabated, as the white metal reaches fresh record highs at $3,012 in the last hour.
The pair extends its bullish momentum into the second straight session on Friday, shrugging off the broad-based US dollar rebound.
Growing concerns over supply-demand in equilibrium continue to power the gains in the industrial metal. These come amid rising supply disruptions after Russian mining giant and the world's largest palladium producer, Nornickel, said that mine closures due to flooding are likely to cause the production of platinum group metals to fall by 710,000 ounces this year.
Against this backdrop, the demand prospects for the metal improve as the global economy recovers from the coronavirus crisis while the stimulus from major central banks and governments also helps in ramping up the economic turnaround.
Palladium has wider applications as an industrial metal.
Price of Palladium
Technically, XPD/USD risks a correction amid overbought conditions on the daily Relative Strength Index (RSI).
Therefore, the latest pullback could extend towards the 23.6% Fibonacci Retracement level of the rally from March 29 lows to record highs. That level aligns at $2,898.
Meanwhile, to the upside, the XPD bulls could retest the all-time high, above which doors open up towards the $3,050 psychological level.
At the time of writing, the metal trades with sizeable gains at $2,980. Every dip could draw bargain hunters, as the fundamental factors remain well in favor of Palladium in the short to medium term.
Palladium price chart: Daily
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.