Palladium price remains in a buy zone as investors wait on U.S. stimulus package

By: Invezz
Palladium price remains in a buy zone as investors wait on U.S. stimulus package

Palladium’s price has advanced from $2995 above $2390 last trading week, and the current price stands around $2361. Investors’ attention is focused currently on the U.S. stimulus, and the U.S. Congress will vote on a $900 billion coronavirus aid package this week.

Fundamental analysis: Investors’ attention is focused currently on the U.S. stimulus

Palladium has seen a significant rise in price since June 2020, and this precious metal differs from gold or silver in terms of investment. Palladium price is expected to continue to be supported over the long-run, and any positive news on vaccines and fiscal stimulus will support this precious metal.

The Food and Drug Administration authorized the Pfizer-BioNTech coronavirus vaccine for emergency use in the U.S., which is undoubtedly positive news for Palladium because it is mostly used in the automotive industry, where it acts as a catalytic converter. The automobile industry has been affected by the Covid-19, and many automobile companies have seen sharp revenues drop.

In only several months, Palladium’s price has advanced from $1830 above $2500, and the current price stands around $2361. Investors’ attention is focused currently on the U.S. stimulus, and the U.S. Congress will vote on a $900 billion coronavirus aid package this week.

“Investors want to see something come through on the stimulus front sooner rather than later as COVID cases continue to rise and economic data has shown that it is beginning to deteriorate,” said Lindsey Bell, chief investment strategist at Ally Invest.

Early this Sunday, Donald Trump said that a stimulus deal had not been reached and complained because of this. “Why isn’t Congress giving our people a Stimulus Bill? It wasn’t their fault; it was the fault of China,” Trump said on Twitter. “Get it done, and give them more money in direct payments.”

The U.S. Federal Reserve had a meeting last Wednesday and left its monetary policy unchanged, but the FED announced that it would support the economy for as long as needed using its full range of tools. Risk aversion will likely prevail in the upcoming weeks, which is not good for Palladium’s price.

The pandemic is still out of control in the U.S. and the country reported over 250K new coronavirus cases in the last 24 hours. This could add pressure to this precious metal price, but as long the price is above $2000, Palladium remains in the “buy zone.”

Technical analysis: Bulls are focused on breaking the resistance level at $2400Data source: tradingview.com

The current resistance levels are $2400, $2500, and $2600, $2200 and $2000 represent the current support levels. If the price jumps above $2400, it would be a signal to buy Palladium and we have the open way to $2500.

On the other side, if the price falls below $2000, it would be a strong “sell” signal, and we have the open way to $1800.

Summary

Palladium price has advanced from $2995 above $2390 last trading week, the current price stands around $2361, and investors’ attention is focused currently on the U.S. stimulus package. If the price jumps above $2400, it would be a signal to buy Palladium, and we have the open way to $2500.

The post Palladium price remains in a buy zone as investors wait on U.S. stimulus package appeared first on Invezz.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.