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Palladium prices go “parabolic” and what it means

Kitco News

(Kitco News) - The palladium futures market is on fire, hitting a record high on Friday and nearing $2,300 an ounce. Rising demand and limited supply are the two main elements that fuel major bull runs in any market.

Nobody knows where the palladium futures market will end up topping out in price, but it is indeed a “gunslinger’s” affair to try to trade it, at present. One could be right on prices appreciating over a period of time, but be wiped out by a significant, short-term downside correction in prices that can be argued is due right now.

What is known is that the palladium market has gone into a “parabolic” price phase—meaning in commodity trading parlance a chart pattern in which prices rise or fall with an increasingly steeper slope. History shows that when a market goes parabolic the eventual top is usually reached sooner rather than later.

So, while there are no technical clues regarding what price palladium futures prices will eventually hit before the bull move ends, technical odds now suggest the top in palladium prices is coming soon.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.