The chip shortage is affecting the auto-makers the most and the demand for chips is now nearly %250 of the supply. Ford Motor Co. said that output may fall more than %20 in the short-term because of the shortage. Currently, auto-makers continue to buy nearly the same amount of resources but if the shortage continues as expected, they may reduce the purchases of raw materials, including palladium. More than %80 of the palladium’s demand comes from auto-makers.

So far Platinum and Palladium prices unaffected by the shortage because purchases continued. The bullish trend channel is still intact and there is nothing to worry about as long as the price stays in the channel. 2370 and 2330 levels can be followed as support levels, 50-hour moving average, and 2430 may become key resistance levels in the short-term.

If the palladium purchases decreased by the auto-makers and the trend channel broke, palladium bulls should be careful against flash falls.