Palladium Surges 25% To New Reach New High

London (July 16)  Palladium hit a new high last week at $877 per ounce. Palladium buyers haven’t seen palladium this high since 2001. Palladium has risen 25% since February. Interestingly, palladium needs to surge another 25% to reach an all-time high, which would be a great achievement considering the mediocre performance of commodities over the past three years.

The move doesn’t come as a surprise to us. We already recommended hedging palladium 5 months ago. The South African strike reduced production at several mines for five months and despite its end, palladium is still way up as it will take some time for South Africa’s palladium mines reach their previous capacity levels.

In our view, there is clearly a fundamental story behind this move and the technical picture still looks bullish to us. Palladium deserves some credit for being at the levels it is today despite the poor performance of commodities. If history has taught us anything, it is that prices are never too high. We wouldn’t be surprised to see seeing palladium recording an all-time high.

Source:  Investing.com