Palladium Price News: XPD/USD bulls attack $2,500 as tensions mount ahead of Russia-Ukraine talks

Palladium (XPD/USD) remains on the front foot around $2,500 as global markets sentiment turns grim during Monday’s Asian session.

The risk-off mood underpins the safe-haven for the US dollar while the XPD/USD tracks gold prices higher.

The latest risk-aversion wave takes clues from headlines concerning the fears of nuclear war and chatters that Russian mercenaries brace for Ukrainian President Zelenskyy’s assassination. On the same line are the fears of further supply crunch due to the strong Western sanctions on Moscow. Additionally, headlines from Belarus that the nation wants to renounce its non-nuclear neutral status also contribute to the risk-off mood and favor the precious metal prices.

However, readiness on the part of Ukraine and Russia to negotiate the terms of the ceasefire, near the Belarus border on Monday, keeps the traders hopeful of a halt in the week-long geopolitical tussles.

Against this backdrop, stock futures in the US and Europe dropped over 2.0% whereas the US 10-year Treasury yields also declined eight basis points (bps) to 1.90% by the press time. Further, the US Dollar Index (DXY) gains around 0.70% intraday at the latest.

Moving on, the US trade numbers for January and Chicago Purchasing Managers’ Index for February may direct intraday moves but major attention will be given to headlines from Russia and Belarus. Also important will be this week’s US Nonfarm Payrolls for February as the CME’s FedWatch Tool marks only 5% probabilities of a rate-lift in March at the latest.

Technical analysis

Although June 2021 bottom surrounding $2,465 guards immediate upside momentum of XPD/USD prices, a six-week-old support line near $2,355 limits the metal’s short-term declines. Also keeping the palladium buyers hopeful is the metal’s successful trading above the 200-DMA level surrounding $2,155.