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Why the Iran Deal Pushed Palladium Through Key Resistance
The dollar fell below 100 for a fourth day after the Iran peace deal, while palladium opened a bullish gap above 1300. Traders eye resistance at 1388-1430 as the next test for the metal's rally.
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The U.S. dollar slid below 100 for a fourth straight session on Monday after the U.S. and Iran agreed to a peace deal over the weekend. The Strait of Hormuz reopened Friday, cutting oil prices and removing a major geopolitical risk premium. That shift in the macro backdrop sent the greenback lower and lifted precious metals, with palladium opening a bullish gap above 1300.
The dollar index opened the week with a bearish gap at 99.20-99.74, following a failed attempt Friday to fill the previous gap at 99.76-99.85. Traders said the repeated rejection around the 100 level confirmed bearish momentum. Support now sits at 99.18, an area reinforced by a bullish gap from early June and the 38.2% Fibonacci retracement. A daily close below that level would likely open further downside, market participants said. A recovery above 99.85 would be the first sign buyers are regaining control.