The Dollar Index rose for a third day, surging after Federal Reserve Chairman Ben S. Bernanke made the case for reducing stimulus as the economy improves, sparking declines in emerging-market assets and commodities.
Palladium may be rare, but it is not a precious metal. While volatility in gold prices may affect palladium prices in the short term, palladium should not be beholden to the broad precious metals investment climate.
The sell-off in precious metals gathered pace this week into what is often called capitulation. Money-managers (hedge funds) cut their long gold positions on Comex by 19,044 contracts in the week to Tuesday, March 26.