Palladium rises sharply after the US Presidential election

Joe Biden won the presidential election in his birth state of Pennsylvania this Saturday and he become 46th president of the United States. Palladium price is expected to continue to be supported over the long-run and could actually accelerate to the upside this November if the global situation stabilizes.

Fundamental analysis: The sentiment for palladium remains bullish

Palladium has seen a significant rise in price since the election day and the price of this precious metal has advanced from $2200 above $2500 in less than several days. It is important to say that this precious metal is different from gold or silver in terms of investment.

The price of gold and silver usually rises when the economy is in a slump. Palladium price charts show the opposite - it decreases when the economy is down. This is one of the reasons why Palladium has not seen a significant rise in price in the wake of the coronavirus crisis as opposed to other precious metals.

Palladium price is expected to continue to be supported over the long-run and could actually accelerate to the upside this November if the global situation stabilizes. Drugmaker Pfizer announced that it could have a coronavirus vaccine ready in the United States by the end of this year.

Vaccines and treatments are still under study and advancing, but there’s no magic solution yet. It is important to mention that palladium is a precious metal and industrial metal. As an industrial metal, palladium is mostly used in the automotive industry, where it acts as a catalytic converter.

The automobile industry has been affected significantly by the pandemic and many automobile companies have seen revenues drop by double digits. The price of this precious metal is currently around the $2490 level and sentiment for palladium remains bullish over the long-run.

Technical analysis: Bulls are focused on breaking the resistance level at $2500

The current resistance levels are $2500, $2600 and $2700, $2300 and $2200 represent the current support levels. If the price jumps above $2500 it would be a signal to buy palladium and we have the open way to $2550.

Rising above $2600 supports the continuation of the bullish trend and the next price target could be located around $2700. On the other side, if the price falls below $2300 it would be a strong “sell” signal and we have the open way to $2200.

Summary

Joe Biden won the presidential election in his birth state of Pennsylvania this Saturday and he become 46th president of the United States. The price of this precious metal is currently around the $2490 level and sentiment for palladium remains bullish over the long-run. Rising above $2600 supports the continuation of the bullish trend for palladium and the next price target could be located around $2700.