- Palladium has been on the back foot amid worsening Sino-American relations.
- Massive demand from Hong Kong counters a reduction in long positions.
- Late November's daily chart continues painting a bullish picture for XPD/USD.
Palladium is trading just above $1,800, marginally lower as American traders are off for the Thanksgiving holiday. Just before the holiday, President Donald Trump signed the Hong Kong bill into law, a move that angered Beijing. Investors fear that the growing dispute over the city-state may weigh on trade talks between the world's largest economies.
The souring market mood has been weighing on demand for metals. Palladium, used for catalytic converters in cars and also in for dental fillings and jewelry had previously enjoyed significant demand which pushed prices higher. XPD/USD has hit a high of $1,825 earlier in November. Some of the demand comes from metal merchants in Hong Kong.
Swiss customs authorities have said that the nation's exports of the metal hit a five-year high last month.
Another bullish development has come from Inventus Mining Crop, which announced that it would buy properties near Sudbury that produce the Palladium as well as other metals. The Rathbun Lake property includes high-grade Palladium, according to the firm.
However, Palladium has also suffered from reduced bets on further gains. Data from the US CFTC showed a third consecutive week of declines in long positions on the lustrous white-silvery metal.
Palladium Price Chart
The XPD/USD daily chart is showing that momentum has flipped to the upside once again, a positive sign. The metal continues trading above the 50, 100, and 200-day Simple Moving Averages. A series of higher highs in recent days is also Palladium-positive.
$1,825 serves as a significant hurdle, and the next level to watch is already the round level of $2,000. Looking down, support awaits at recent stepping stones, including $1,780, $1,735, and $1,680.
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