Supply concerns are bringing attention to palladium prices, which rose nearly 14% in two days to briefly shoot beyond the $2700/ounce mark. These supply concerns emerged after the world’s largest palladium producer indicated on Tuesday that it could see a shortfall of nearly 20% from its original 2021 production guidance.
Nornickel cites water issues that led to the closure of several mines last month as the cause of the reduced forward guidance, and it now expects a decline in its 2021 production by 710,000 ounces.
Analysts at Commerzbank are bullish on Palladium, with the metal having cleared the $2500 resistance. Expectations of a robust economic recovery continue to drive recovery in prices of risk commodities.
Palladium prices have violated the 2596.36 resistance and are aiming for the 2727.82 resistance target (21 February 2020 high). However, attainment of the latter depends on the confirmation of the bullish break of the former via a 3% closing penetration above the 2500 support.
On the flip side, dwindling prospects for the bears can come alive if the price returns to the rectangle, taking out 2500 and 2424.44 in the process. 2277.81 and 2200 remain the lows to beat if the price is to break down the rectangle and initiate a push towards 2093.26.
