Gold 
“Palladium Price Outlook
Palladium was the only exchange traded precious metal that ended April lower than where it started the month. While all precious metals softened during the second half of April, palladium prices took a particularly bad hit because its fundamentals and consequently investor sentiment toward the metal are negative. The weakness at the end of April has continued into early May. It would not be surprising to see palladium prices retest $860 in the near term.
While market participants are not thrilled about the prospects of palladium at this time, the slowdown in battery electric vehicles (BEVs) adoption in various markets provides a lifeline for the metal at least in the short term. The Chinese vehicle scrappage program which took effect starting 1 May incentivizes Chinese consumers to scrap their old vehicles for electric vehicles. This will to some extent offset lower adoption of electric vehicles in other markets. The Chinese government is also offering a smaller incentive to consumers that are looking to scrap their old internal combustion engines (ICEs) for new smaller ICEs.
The massive amounts of above ground palladium inventories coupled with new palladium capacity coming onstream and the shrinkage of demand from the auto sector are all factors that are expected to weigh on palladium prices. Seasonal weakness and overall softness in other precious metals are expected to drive palladium lower in the short term., While $860 is the first support level, any weakness in economic growth as the year progresses which would weigh on auto and industrial demand could drive palladium prices lower, possibly toward $800.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
