Palladium (XPD/USD) on Track for $2,000 as Metals Rally Extends – Price Outlook

[Ben Graham]

Palladium (XPD/USD) has lagged the rally in metals throughout the year as Gold and Silver took all the attention, with both consistently moving to respective all-time highs as the debasement trade unfolded. But things could be changing.

This rare precious metal is critical for modern industry, serving as a key component in automotive catalytic converters to reduce emissions, as well as in electronics, fuel cells, and hydrogen purification technologies.

In 2025, as inflation and tariffs have retaken control of price trends, and amid the competitive chasing for AI advancements which demand robust industrial hardware, metals have gathered high attention and this trend isn't stalling just yet.

Palladium is no stranger to explosive moves.

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Palladium (XPD/USD) From 2016 to 2022 – Source: TradingView

From 2016 to 2021, Palladium staged a massive run from gaining 630%, gathering some attention from Commodity traders.

This culminated in a particularly violent squeeze from December 2021 to March 2022, driven by supply fears following the onset of the Russia-Ukraine conflict, as Russia remains a top global producer (about 44% of the global production).

Now targeted by proxy trade buyers looking for value, Palladium has become the second-best performing metal in December.

It is trading very close to Platinum in monthly performance, up 22% since December 1.

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Metal Performance in December 2025. December 22, 2025 – Source: TradingView.

For those looking to expand Market knowledge and high volatility commodities, Palladium could offer some decent opportunities in 2026.

Let's dive right into a multi-timeframe Analysis of the Precious Metal to see if the current rally has enough potential to reach $2,000 and eventually reach new records.

Read More:

• Markets Today: Gold Breaches $4400/oz, Silver Up 2.75%, Nikkei Rises 1.9% & FTSE 100 Eyes Short-Term Pullback
• Platinum reaches $2,000; Palladium breaks 2023 Highs – Metals Outlook
• US Indexes Outlook: Santa Rally finally showing up? – Risk-Appetite improves after US CPI miss

Palladium (XPD/USD) Multi-Timeframe Technical Analysis

Daily Chart

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Palladium (XPD/USD) CFD Daily Chart, December 22, 2025 – Source: TradingView

Palladium has started the week on a high note, propped higher once again by strong demand around all metals.

Officially breaching the $1,800 psychological level and its 2023 highs, the move got quite aggressive to $1,866 highs before seeing a consequent profit-taking move.

Momentum seem to be stalling a bit as RSI reaches overbought throughout different timeframes.

On the higher timeframe however (for investors or long-term traders) evolving within a daily upward channel since June 2025, the metal is forming a stable uptrend.

The challenge for buyers however will be to breach the higher bound of the daily channel if demand is strong enough to push to $2,000.

Failing to do so before year-end may trigger interesting mean-reversion setups to retest the October highs at $1,676.

Let's take a closer look.

4H Chart and Technical Levels

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Palladium (XPD/USD) CFD 4H Chart, December 22, 2025 – Source: TradingView

Pullback traders will look at the 20-period 4H MA, currently at $1,750 as momentum has reversed on the intra-day timeframe.

We will observe on the 1H timeframe if the $1,800 level can hold or if odds for a retracement get higher.

Palladium Technical Levels to keep on your charts:

Resistance levels

• Fib-Induced potential resistance at $1,941
• Session highs $1,866
• 2023 Highs Resistance $1,800 to $1,830 (testing)
• December 2022 Pivot $1,980
• $3,410 2022 All-time Highs

Support levels

• $1,750 to $1,765 Key 1H Support, 4H 20 MA and Channel Lows
• Current Pivot $1,650 to $1,670 (October peak)
• $1,500 Major Psychological Support
• November Support $1,350
• $1,100 September Lows Support

1H Chart

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Palladium (XPD/USD) CFD 1H Chart, December 22, 2025 – Source: TradingView

$1,800 is acting as a short-term magnet, with momentum stalling around here after the explosion and retracement.

It will act as a key psychological level for the price action:

• Failing to breach lower adds to chances of a further upside breakout to $1,900, pointing towards the $1,940 Fibonacci-Extension as target
• Breaking the $1,800 (+/- $10) Support Zone offers the possibility of a retracement to the lows of the 1H Upward Channel, which coincide with the 4H 20-Period MA around $1,750.

Safe Trades and Merry Christmas!

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