A 17-year peak for palladium

Palladium has been the winner among the four precious metals, having skyrocketed a whopping 57% on a YTD (year-to-date) basis in 2017 as of the time of this writing (December 27). If we look at the performance of gold, silver, and platinum, they’re showing YTD gains of 11.9%, 4.3%, and 2.4%, respectively, as of the same date.

Palladium touched its 17-year peak on December 27 and closed at $1,071.7 per ounce on December 27. Its RSI level was at 77.2 that day.

How the Gold-Palladium Spread Is Moving Lately

The major contributor to the rise in the price of palladium is the increased preference for diesel-fueled vehicles over gasoline-powered cars. There are also chances that the physical shortage of the metal could have given a further bounce to it.

Notably, the Physical Palladium Shares ETF (PALL) is known to track the price fluctuations in palladium and has risen ~55.6% YTD.

Spread reading

When reading palladium markets, it’s crucial to understand the gold-palladium spread, which measures the number of palladium ounces it takes to buy an ounce of gold (IAU). The higher the spread, the weaker palladium is relative to gold.

This spread has been steadily declining over the past year due to the increasing strength of palladium over gold. The gold-palladium spread was ~1.2 on December 27.

RSI level

The RSI (relative strength index) level for the gold-palladium spread was 42.2 as of December 27. Remember, when an RSI level is below 30, there’s a chance that prices could rise. When an RSI level is above 70, it could indicate a decline in price.

These mining companies also closely react to the changes in precious metals. The mining companies that have seen an uptrend in prices over the past week include Alacer Gold (ASR), Hecla Mining (HL), Cia De Minas Buenaventura (BVN), and Barrick Gold (ABX).

In the next part of this series, we’ll discuss call-implied volatility and RSI figures in greater detail.

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.