Palladium Retreats Amid Trade Optimism

2025-10-27 17:36 By Dongting Liu 1 min. read

Palladium futures traded around $1,420 per ounce, retreating from an over two-year high of $1,655 on October 16th, as optimism over US-China trade talks reduced demand for safety and pressured bullion assets.

US authorities noted optimism on striking a trade deal with China ahead of their Presidents' meeting, limiting tensions between the world's largest economies and driving investors to pivot out of safety and into riskier assets.

Still, palladium was 60% higher year-to-date due to tighter supply and a less-hawkish Federal Reserve.

Palladium is set for a deficit this year as mine supply declines, led by lower output out of South Africa.

Sibanye-Stillwater cut Stillwater output to 200,000 ounces/year, and Impala’s Lac des Iles mine will close in 2026.

Also, the US has launched an anti-dumping probe into Russian palladium, citing unfair pricing and subsidies.

Meanwhile, the Fed is due to deliver a second rate cut this year following a softer-than-expected inflation print for September.



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