Palladium Price Outlook
"Palladium prices could rise over the next few months. The gains are not expected to be particularly strong given relatively weak fabrication demand fundamentals and cautious investors. Seasonal strength in palladium prices coupled with an expectation of overall strength in the precious metals complex is expected to provide some support to palladium prices in the near term, however, coupled with on-going South African and Russian supply concerns.
The Euro 7 emissions standards released today, 10 November, set extremely stringent guidelines for curbing emissions, the news of which should provide some support to palladium prices. The actual standards do not go into effect until later in this decade so there will not be any actual increase in fabrication demand for some time. However, palladium prices are likely to find short term support from these new standards.
Palladium prices have initial resistance around $2,100, which if broken could take prices toward $2,275.
The fabrication demand fundamentals of palladium are weak, however, which should be expected to continue acting as a headwind to metals prices. Support for palladium prices is positioned at $1,760."