Palladium Surges Toward Three-Year High
2025-10-16 16:03
By
Dongting Liu
1 min. read
Palladium surged above $1,630 an ounce for the first time since 2023, underpinned by robust safe-haven demand and expectations of US interest rate cuts.
Escalating US-China trade tensions have fueled market risk aversion, driving investors toward precious metals, including palladium, while dovish signals from Federal Reserve Chair Jerome Powell have reinforced expectations of looser monetary policy.
Structural supply-demand dynamics are also underpinning prices.
Palladium remains a key component in automotive catalytic converters, with demand sustained by the ongoing growth of hybrid vehicles.
On the supply side, tensions persist.
Russia, which accounts for roughly 40% of global palladium, continues to be affected by the ongoing Russia-Ukraine conflict.
Meanwhile, South Africa, responsible for around 30% of global output, reported a 3% year-on-year decline in platinum group metals (PGM) production in August, further tightening global supply.