- Summary:
- Palladium prices and those of lithium and platinum are expected to rise, as demand for these metals will shoot up due to increased demand for electric cars.
Strategists at ABN Amro have projected that Palladium and other platinum group metals, along with lithium, will see substantially higher demand as the global economy goes greener.
ABN Amro projects that the path towards the rollout of efficient fuel combustion or total replacement of internal combustion engines will lead to increased utilization of lithium for batteries and palladium/platinum for electric car parts. As the demand for electric cars increases considerably, higher demand for lithium and rare earth elements will be the norm, allowing Australia, Chile and China to increase their strong supplier power, the report said.
The report concludes that the supply shortage that already exists for these metals, coupled with higher demand, will result in higher prices.
Palladium recently hit new highs, with an unconvincing pullback that still drips with bullish pressure around the $3000 mark.
Technical Outlook for Palladium
Palladium price action has pulled back slightly after testing the 3,000 psychological resistance on 10 May and failing to break past that level.
The downside is limited, as shown by today’s intraday bounce off Monday’s lows. If the bulls build on this momentum and eventually break past the 3,000 price mark, 3016.99 is expected to be the next target (88.6% Fibonacci extension level). Above this level, Palladium will target new all-time highs at 3080.0 (100% Fibonacci extension),
with additional targets at 3100 (psychological resistance) and 3230.35, respectively.
On the other hand, if an outside day candle forms to extends the downside following the conclusion of today’s price action, 2875.25 could become the initial target. Below this area, 2803.62 and 2752.21 are additional targets to the south, along with the 2700.58 psychological price level.
Palladium; Daily Chart
