How to start investing in (buy and sell) Palladium (XPDUSD)?

Open SuperForex’s Online Trading Account, and you can start trading Precious Metals such as Gold, Silver, Palladium and Platinum.

All of these commodities without owning the actual asset.

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In this article, we will explain more about Palladium (XPDUSD) before you start trading.

What is palladium?

Palladium is one of the rarest precious metals and is mainly used for industrial and electronic purposes. The largest industrial use of shiny metals is catalytic converters for automobiles because they absorb harmful fuel emissions. Metal is harder and more durable than platinum. Palladium is also widely used in modern industry. It is used in the production of hybrid cars and is applied to solar energy and fuel cell systems and products. Palladium has become a popular investment option as the price of precious metals exceeded the price of gold in 2019.

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Reasons to trade palladium

Investors trade palladium to diversify their portfolios and hedge against currency weaknesses (such as the devaluation of the dollar) and stock market volatility. Palladium and other precious metals are also considered safe havens because they can maintain their value during times of global unrest and high inflation.

Gold, silver and palladium prices can move together, but palladium prices can vary because they can be affected by a variety of factors.

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What affects the price of palladium

Spot prices for palladium can fluctuate quickly and significantly. Precious metal prices can be affected by their industry and investment demand. As mentioned earlier, palladium is used in the manufacture of catalytic converters and is applied in the manufacture of hybrid vehicles, solar energy, fuel cell systems and products. Precious metal prices often fluctuate as the automotive industry thrives in China and Russia keeps its stockpiles state secret and new uses for modern technology.

Prices can also be affected by interest rates, currency markets, and greater geopolitical risk. Palladium is also a dollar-dominated commodity, and possible depreciation of currencies could lead to higher metal prices. 75% of palladium is mined in the United States and Russia. Due to historical tensions between the two countries, supply shocks are very likely and metal prices could rise if Russia decides to cut palladium exports.

Mining operations can also affect the price of palladium. Problems that impede metal mining, such as worker strikes, can increase prices. In addition, if the market is flooded with supplies, miners may slow down operations to raise prices.

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