Should I buy Palladium in April 2022?

Palladium’s price has weakened from its recent highs above $3400 registered on March 07, and the current price stands at $2422.

Palladium is mostly used in the automotive industry

Palladium has stabilized above $2200 support, but the impact of the Russian-Ukrainian war and the rising risks of the recession continue to worry investors.

The price of gold and silver usually rises when the economy is in a slump, while Palladium’s chart shows the opposite, and the price of Palladium could fall if the Ukraine crisis worsens as investors look for safer places to invest their money.

Russian forces continued with operations and reportedly bombed a rail evacuation hub in territory held by Kyiv, and for now, we can not see the light at the end of the tunnel.

European Commission President Ursula von der Leyen said that Russian forces appear to have committed war crimes by targeting civilians in Ukraine and the EU adopted new sanctions against Russia, including bans on the import of coal, wood, chemicals, and other products. Ursula von der Leyen added:

The European Commission will pledge one billion euros to support Ukraine and countries receiving refugees fleeing the war following Russia’s invasion.

British Prime Minister Boris Johnson has traveled to Kyiv to meet with President Volodymyr Zelenskyy, and they will discuss how to help Ukraine with more financial and military aid.

The war between Ukraine and Russia continues to cause supply chain issues for many companies that look to find other sources for their parts.

Palladium is mostly used in the automotive industry, where it acts as a catalytic converter, and it is important to say that more than half of all the Palladium annually mined is turned into catalytic converters.

The automotive industry has serious problems currently; raw materials prices have advanced to multi-year highs, supply chain issues have escalated, and many companies have already reported they had lost sales because of these problems.

The impact of the Russian-Ukrainian war suggests more pain for the automotive industry, and it could have potentially longer-term implications for many companies.

Technical analysis

Those whose interest is to invest in commodities like Palladium should consider that the risk of another decline is probably not over.

Data source: tradingview.com

Palladium price has weakened more than 25% in less than thirty days, and if the price falls below $2000 support, the next target could be around $1800.

The current resistance level stands at $2600, and if the price jumps above this level, it would be a signal to trade Palladium, and we have the open way to $2800. 

Summary

Palladium price has weakened more than 25% in less than thirty days, and the impact of the Russian-Ukrainian war continues to worry investors. Palladium is mostly used in the automotive industry, which has serious problems currently.

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