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Dramatic 21% Plunge In Palladium Prices - A Look At The Indicators That Suggest A Tumble Below $1000

Published 12/01/2024, 16:26
Updated 12/01/2024, 17:40
© Reuters.  Dramatic 21% Plunge In Palladium Prices - A Look At The Indicators That Suggest A Tumble Below $1000

Benzinga - by Zaheer Anwari, Benzinga Contributor.

  • In September 2017, Palladium reached a historic milestone, surpassing $1000 per ounce for the first time, and experienced a staggering 195% increase in value over the next three and a half years.
  • Palladium's price fell 38% in 2023 and an additional 10% so far for 2024.
September 2017 marked a significant milestone for Palladium, a lesser-known precious metal in comparison to gold and silver. Palladium reached an unprecedented price of $1000 for the first time ever.

In the following three and a half years, its value skyrocketed by an impressive 195%, reaching a peak of just over $3000. This surge in price showcased the growing demand for Palladium and its emerging reputation as a highly lucrative investment opportunity.

Palladium's price journey was far from smooth. After reaching its peak, the commodity faced a substantial setback, plummeting by 47% before finding stability just above $1500 in December 2021.

This decline served as a stark reminder of the unpredictable nature of commodity markets, where prices can swing dramatically due to numerous factors such as market demand, geopolitical tensions, and economic conditions.

Buyers quickly bounced back from the setback and regained their confidence, leading to a significant surge in the price of Palladium. In March 2021, the price skyrocketed, reaching an impressive all-time high of $3433.

This marked a remarkable 121% increase from the prices seen earlier in the same month, highlighting a resurgence in investor interest and market optimism.

The brief recovery quickly came to an end as buyers became fatigued. Despite initial optimism and high expectations, the market saw a steep decline, causing Palladium's price to plummet by 71% from its record highs.

This decline serves as a reminder of the cyclical nature of commodity markets, where periods of rapid growth are often followed by sharp downturns.

Palladium faced more challenges in 2023 and 2024. The price of Palladium dropped by 38% in 2023 and continued to decline by 10% in 2024.

In December 2023, investors and market analysts were briefly hopeful as Palladium's price surged by 34%, hinting at a potential bullish trend. Regrettably, this optimism was promptly extinguished as the price plummeted 21% once again, dipping below the significant support level of $1000.

The $1000 level now serves as a key resistance level. If it dips below the December 2023 low of $927, it could signal further weakness in the market for Palladium.

After the closing bell on Thursday, January 11, the commodity closed at $987.42, trading down by 1.30%.

This article is from an external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

© 2024 Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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