The automobile industry is going
through radical changes. As the world’s climate continues to change, more
people and government are moving to electric vehicles. In fact, a number of
countries in Europe and Asia have announced that they will ban
combustion-engine vehicles in the next few years. As such, new companies like
Tesla are coming up with the goal of developing electric vehicles. Others in
this industry are Rivian and Nio. At the same time, the traditional vehicle
companies like Ford, General Motors, and BMW are boosting their production of
electric vehicles.
Another major change in the
industry is the rise of ride sharing companies. Uber and Didi are the two
biggest companies in this industry. Uber dominates the United States, European,
and in some Asian countries. Didi on the other hand dominates the Chinese and
South American industry. Lyft is the second-biggest company in the industry in
the US. Recently, it went public and is currently valued at more than $20
billion. Uber is expected to go public this quarter and will be valued at more
than $100 billion.
Another change in the industry
has been on the emission standards. These standards arose after the scandal
that rocked Volkswagen, the largest automaker in the world. The company was
accused of cheating by the United States and was forced to pay billions of
dollars in fines. This scandal led to the EU regulators and those from China to
put more stringent standards. This has led to a slowdown in auto ales in the
two regions.
The next change in the industry
is that the global economy has seen a peak of the car market. This is because
the current policies of low interest rates have led to an increase in purchases
by people in Europe, United States, and Asia. However, the market is now
thinking about higher interest rates, which will lead to a decline in the
number of auto sales. In fact, all the leading auto manufacturers have
announced that their unit sales have reduced.
A key metal that has been
affected in all this is palladium. The precious metal is found in most diesel
vehicles to act as a catalytic converter. This converter helps in the reduction
of emissions. The increase in demand for vehicles and the stricter conditions
have led the metal to gain significantly. This year, the price reached a high
of $1600. This makes it the most expensive precious metal in the world.
In recent weeks, the price has
however declined to a low of $1330, which is below the 21-day and 42-day moving
averages. The MACD has reacted by declining sharply as shown below. The price
is along the 23.6% Fibonacci Retracement level. In the near term, the price
could resume the upward trend to test the important $1400 level.
The post Why $1400 is the Level to Watch for Palladium appeared first on Forex.Info.