Palladium is down by 5.01%

Palladium futures rose above $1,320 per ounce, rebounding from recent lows, as a drop in bond yields from multi-year highs boosted the appeal of non-yielding metals. The US Treasury announced it will increase its buyback operations, pushing borrowing costs lower and boosting demand for non-yielding metals. On the supply side, concerns over power supply disruptions and uncertainty surrounding Russian exports continued to underpin prices. Meanwhile, uncertainty over shipments through the Strait of Hormuz kept industrial buyers cautious. Although rising hybrid vehicle demand has provided near-term support for autocatalyst consumption, markets remain cautious amid the broader shift in demand toward EVs, which recorded a fifth consecutive monthly increase in July, as the palladium market could still record a global surplus.

Palladium futures slipped below $1,330 per ounce after hovering near a two-month high, weighed by concerns over the long-term impact of growing electric vehicle demand. Although rising hybrid vehicle demand has provided near-term support for autocatalyst consumption, markets remain cautious amid the broader shift in demand toward EVs, which recorded a fifth consecutive monthly increase in July, as the palladium market could still record a global surplus. Meanwhile, uncertainty over shipments through the Strait of Hormuz kept buyers cautious on the industrial front. On the other hand, concerns over power supply disruptions and maintenance bottlenecks at South African mines, alongside uncertainty surrounding Russian exports, continued to underpin prices.

Palladium futures climbed toward $1,370 per ounce, remaining near more than two-month highs as reduced expectations for a Federal Reserve rate hike and broader strength across precious metals supported demand. Markets price in about a 50% chance of a September Fed hike, down from 60% before last week’s weaker-than-expected US jobs report, with lower rates generally supporting non-yielding precious metals. Meanwhile, heightened geopolitical tensions supported precious metals, as attacks on shipping by the US and Yemen’s Iran-aligned Houthis and uncertainty over the Iran conflict kept safe-haven demand elevated. On the supply front, concerns over disruptions in South Africa and uncertainty over Russian exports continue to support prices, with extended maintenance at South African processing facilities reducing refined PGM output amid tight inventories. Over the past month, palladium has risen 9.58% and is up 21.67% year-on-year.