Palladium belongs to the platinum metals. It is widely used in manufacturing.
Earlier this week, Generation Mining announced a contract with Glencore to supply copper concentrate containing palladium, platinum, gold, silver, and copper. The concentrate will be produced at the Marathon project near Marathon, Ontario.
Under the agreement, Glencore will purchase 50% of the total copper concentrate produced at the project, and the product will be processed at Glencore's Horne copper smelter in Quebec, Canada.
In addition, Gen Mining said it has reached an agreement with a European copper group that will buy the remainder of the concentrate from the Marathon project. At the moment, Gen Mining is awaiting final agreements on the purchase of all the production from the mine. This is related with the end of the project's development funding, scheduled for the end of 2023.
The Marathon project is Gen Mining's core business. This is a large undeveloped copper and palladium minefield located in Ontario.
The agreement between Gen Mining and Glencore to supply copper concentrate containing palladium could affect the pricing of all metal groups including palladium. If the Marathon project starts producing significant volumes of copper concentrate containing palladium, it could increase the supply of palladium on the market. However, if palladium demand does not increase at the same rate, it could lead to a decline in the price of the metal.
On the daily timeframe, the palladium price is in a steady downtrend. If the price continues going in the same direction, it could face a strong support at 1330.00, which remains the key support since the beginning of this year.
On the hourly timeframe, the price is in the correction at the limits of the resistance, and the pullback from these levels signals selling.
Palladium's short-term prospect is to sell.
The target is at the level of 1330.00.
Part of the profit should be taken at the level of 1360.00.
A stop loss is set at the level of 1445.00.
A bearish trend has a short-term nature, so it is worth to select the trading volume not more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.