Palladium may reach $500 in coming months
Monday, 18 January 2010
LONDON, Jan 17 (Bloomberg): Palladium, already trading at an 18- month high, may reach $500 an ounce in the next several months, according to technical analysis by Barclays Capital.
The attached chart shows a $463 target the bank identified by drawing a trend line from palladium's 2001 high of $1,125. A second chart shows the metal's previous bullish channel and a target of $480 based on a June 2008 peak. Palladium traded at $449.77 as of 11:15 a.m. in London.
The metal is "building value above its previous bullish channel and threatening to recover above a trend line drawn from the 2001 peak." Barclays analysts said in the report. "We ultimately expect a recovery above this larger trend line, this would confirm a stronger move to targets at 480 and 500 in the months ahead."
Palladium beat gold, silver and platinum in 2009. Investors bought precious metals to hedge against a plunging dollar and on concern that government spending to lift economies out of the worst global recession since World War II would spur inflation.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
The attached chart shows a $463 target the bank identified by drawing a trend line from palladium's 2001 high of $1,125. A second chart shows the metal's previous bullish channel and a target of $480 based on a June 2008 peak. Palladium traded at $449.77 as of 11:15 a.m. in London.
The metal is "building value above its previous bullish channel and threatening to recover above a trend line drawn from the 2001 peak." Barclays analysts said in the report. "We ultimately expect a recovery above this larger trend line, this would confirm a stronger move to targets at 480 and 500 in the months ahead."
Palladium beat gold, silver and platinum in 2009. Investors bought precious metals to hedge against a plunging dollar and on concern that government spending to lift economies out of the worst global recession since World War II would spur inflation.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.