Palladium's Sudden 31% Reversal After A Steep 64% Decline – Analyzing The Unexpected Turnaround In The Precious Metal

• Palladium has experienced a dramatic decline of 64% since March 2022, a stark reversal from the 256% bull trend that began in August 2018.
• In contrast to palladium's bearish trend, gold has been on the rise, reaching new record highs, including a brief peak at $2146 this month.
• Palladium has shown signs of recovery with a 31% surge from its recent support level.

Palladium has significantly declined since March 2022, falling by 64%. This marks a sharp contrast to the previous bull trend that began in August 2018, with the price soaring by an impressive 256% and reaching its peak in May 2021.

The $1000 mark has served as a crucial support level. Just below this level, another support exists at $910, which was the high point in September 2014. The recent price movements have brought palladium to levels not witnessed since August 2018.

While palladium has been in a decline, gold has been steadily rising to new record highs. Just this month, gold briefly reached $2146.

The recent support level for palladium has held strong, with the metal surging by 31%. However, there are obstacles ahead. The July 2023 low is currently standing as a resistance level, preventing further price increases. Furthermore, the daily 200 simple moving average, which sits at around $1270, could also pose as a potential barrier.

The recent price movement of palladium highlights the potential for profit in commodities through both long and short positions. However, the current market conditions, characterized by strong levels of support and resistance on both sides of the price, indicate that it may take time before a clear trend emerges.

Navigating the current palladium market can be challenging for investors. While there is potential for recovery based on the recent bounce from the support level, there are also significant hurdles posed by the resistance levels ahead.

After the closing bell on Wednesday, December 19, the commodity closed at $1225.69 trading up by 3.20%.

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