Limited palladium supply has pushed prices up to new all-time highs. At the end of April, the price of palladium broke through the psychologically important $3,000 milestone and retraced to a record high of $3,010. On Tuesday, May 4, palladium has been trading at $2,975 in a correction after the recent rally, but after consolidating in the $2,955-2,985 range, the metal could make a bull run towards $3,035.
The key upside trigger in this case is the smooth recovery of global economies, as part of which industrial production is on the mend. The auto industry strategy remains focused on greener, lower-emission technology, and palladium is used extensively in catalytic converters. The quicker global industrial output snaps back, the better for the price of palladium. Furthermore, limited supply acts an additional support factor.
The metal has been trading in line with a long-term uptrend since February 1. Palladium is up 21% YTD.