The Conversation (0)
A brief overview of palladium price developments, supply and demand, and significant market movers.
With the overall pullback in commodities, the weak euro and a strong dollar, investors currently possess an extremely negative attitude toward palladium. This is reflected in the metals sliding price this month.
In April, the palladium hit a low of $637 but end the month at $682, up $32 dollars. News such as growth in the US and Chinese auto markets provided boosts to the metal’s price.
This month, there is quite a different picture. Palladium has fallen below $600 and is currently struggling to keep its head above that level. From production disruptions to deficit forecasts, the palladium market this has carelessly cast aside potentially bullish news and investors have continued fleeing the market.
There has been a significant drop in NYMEX net long positions. UBS precious metals strategist Edel Tully said not since April 2003 have speculators been short palladium.