Gold 
“Palladium Price Outlook
Palladium prices rose alongside the entire precious metals complex during the first half of March. Unlike the other precious metals, however, palladium did not participate in the price rally that occurred during the last week of March and into the first several trading days of April. Palladium prices instead moved in a sideways fashion mostly between $980 and $1,040. Palladium prices’ inability to rise when the rest of the precious metals complex was rising suggests that investors are hesitant to go long the metal at this time.
The supply and fabrication demand fundamentals for palladium are expected to be a lot worse than those for platinum, given palladium’s extensive exposure to the passenger vehicle market. The market share of electric vehicles (EVs), which do not use palladium because they have no need for an autocatalyst, has grown rapidly in the passenger vehicle sector and is expected to continue rising going forward. While there has been a slowdown in the rate of growth of pure electric vehicles, which should provide some relief to palladium fabrication demand, EV growth rates could pick up in the future when EVs become even more cost competitive with internal combustion engines and charging EVs becomes faster and more easily available.
The ongoing rise of EVs, coupled with ample supply of the metal both from primary and secondary sources is expected to keep downward pressure on prices. While there is ample supply, there are risks to mine supply from both Russia as well as South Africa. That said, unless there is an actual supply disruption the risk of supply disruption will only support prices not necessarily drive it higher in any meaningful way.
Over the next three to six months, palladium prices are expected to move between $900 and $1,100 with a bias to the downside. If strength in the rest of the precious metals markets persists as CPM projects, palladium prices may get pushed toward the upper end of this range. If there is an actual mine supply disruption prices would be expected to blow past $1,100.”
*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.
