Palladium Falling Out of Favor — A Week of Loss
With the tough times coming to almost all commodities this week, especially those with industrial use, palladium looks to be one of the most badly hit assets. The metal has set a new low since September 10 today.
Palladium was one of the biggest beneficiaries of the commodity rally that started back in August when the eurozone problems had become less of a concerns for the investors worldwide. It gained more than 18 percent between August 17 and September 14. Following the partial resolution of the European troubles, the third round of quantitative easing declared by the United States provided even more support for palladium.
The metal’s good luck ended this week as each day was ending below its opening for this commodity. Analysts believe that the next year will not be that good for most of the commodities — QE3 will fail to provide the liquidity required for an extreme speculative growth that was seen recently. Additionally, there are more favored commodities, like gold and silver, that may serve as the investment vehicle of choice compared to platinum and palladium.
A possible trigger that has sent the palladium futures down on Monday was the report by Noront Resources Ltd. on feasibility of its Ontario
Palladium December futures went down from $663.50 to $662.95 as of 17:55 GMT on NYMEX today. The daily low was at $654.40.
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