Palladium’s price remains under pressure; this precious metal’s price fell from $2500 to $1940 since the beginning of September 2021, and the current price stands around $2016.
Fundamental analysis: The automotive industry has demand and supply concerns
Palladium continues to trade above $2000 support, but the concerns that the fast-spreading Delta variant could hit the economy could negatively influence this precious metal price in the upcoming weeks. The price of gold and silver usually rises when the economy is in a slump, while Palladium’s chart shows the opposite, and the price of Palladium could fall if the economic situation worsens as investors look for safer places to invest their money.
Delta variant of the coronavirus represents the issue for the automotive industry, and Palladium is heavily dependent on the automotive industry for its pricing. Palladium is used in the automotive industry, and more than half of all the Palladium annually mined is turned into catalytic converters.
The automotive industry also has demand and supply concerns currently, and many big companies scaled back production of some of their largest, most profitable models because of the ongoing semiconductor shortage. The semiconductor shortage throttling global car production suggests more pain for the automotive industry, and demand for Palladium could fall even more.
“The industry-wide semiconductor chip shortage is causing massive auto production cuts around the globe, and auto industry officials say the problem is getting worse. Several leading car-makers have had temporary plant closures or have announced massive production cuts as a result of the ongoing chip shortage,” Reuters reported.
It is also important to mention that the U.S. dollar climbed following a better than expected rise in U.S. retail sales for August, which also put pressure on Palladium. Investors have
