Palladium Futures Hover Below 3-Year High

Palladium futures hovered around $1,750 per ounce, about 20% below the three year high of $2,189.5 reached on January 25, as platinum group metals retraced earlier gains.

The dollar rebounded, weighing on bullion and platinum metals, amid concerns that recent rallies lacked strong economic fundamentals.

Support for the currency was reinforced by a strong US jobs report, with non-farm payrolls rising by a more than expected 130,000 and the unemployment rate unexpectedly falling, highlighting labor market resilience and tempering dovish Fed bets.

Russia and South Africa account for more than 75% of global production, with Russian output facing technical constraints while South African miners are only beginning to recover profitability after a weak 2024.

Demand remains mixed as strong hybrid vehicle sales support use of palladium heavy catalytic converters, offsetting some electric vehicle pressure.