Palladium Outshines Other Metals

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It has been a rough ride for metals over the last six weeks, but two stand out since mid October. The PerfChart below shows the percentage change in six key metals since mid October, which is when the stock market bottomed. The Silver ETF (SLV), Gold SPDR (GLD), Platinum ETN (PGM) and Copper ETN (JJC) are down, while the Aluminum ETN and Palladium ETF are up. I would not go as far as to suggest that money is rotating into aluminum and palladium, but these two are clearly the strongest of the lot. Note that this PerfChart does not include today’s data. PALL is up slightly today, but JJU is down over 3%.

metals_October_December_2014

 

The next chart shows the Palladium ETF (PALL) within an uptrend over the last three years. The ETF is at an interesting juncture because it fell to the July 2012 trend line in September and firmed the last two months. Even though gold and platinum remain under pressure since mid October, PALL got a bounce off support and edged above its October high last week. Note that palladium is a key component in catalytic converters for cars. The decline in gasoline prices could spur auto sales and usage, thus increasing demand for palladium. Auto-Truck sales will be reported today and analysts are expecting strong numbers.

palladium_price_daily_2_December_2014

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