Is palladium a good option to buy or sell in November?
Palladium has not seen a significant price increase after the coronavirus crisis. Its price has extended its correction from the all-time highs above $2,875, recorded in February 2020. As long as it is above $2,000, this precious metal will remain in the “buy” zone. Overall sentiment for palladium remains bullish in the long term.
The price of palladium has weakened from $2,382 below $2,200 last week. The current price is around $2,285, as investors’ attention is currently focused on the US presidential election.
Palladium has not seen a significant increase in price in the wake of the coronavirus crisis, unlike other precious metals such as gold or silver. It is essential to say that this precious metal differs from gold or silver in terms of investment.
The price of gold and silver generally increases when the economy is in a depression. Palladium price charts show the opposite: it declines when the economy is depressed, according to British financial expert Invezz.
Palladium is a precious and industrial metal. As an industrial metal, palladium is used primarily in the automotive industry, where it acts as a catalytic converter.
The metal prices are forecast to increase in the long term
On the industrial side, metal demand from China has been a driving force behind recent price gains. Still, the potential for economic impacts related to the pandemic remains a disturbing factor for analysts and miners.
The auto industry has been significantly affected by the pandemic. Many auto companies have seen their revenues drop by double digits. The cost of this precious metal is currently below the $2,300 level, but sentiment for palladium remains bullish in the long term.
Risk aversion will likely predominate in the coming days, which is not favourable for the price of palladium. Covid-19 cases in the United States keep rising, while Europe is not doing better with the pandemic.
This is certainly not good for the economy and could add another pressure to the price of palladium in the coming days. Its price is expected to continue to support in the long term and could accelerate higher this November if the global situation stabilizes.
If the price jumps above $2,300, it would be a signal to buy palladium, and we have our way to $2,350.
Rising above $2,400 supports the continuation of the uptrend and the next price target could be around $2,500.
