Palladium is down by 5.01%

Palladium futures strengthened to around $1,360 per ounce, recovering from recent losses as supply risks, resilient automotive demand and a weaker US dollar supported prices. Supply concerns persisted in South Africa and Russia, which together account for the vast majority of global mined output, with operational hurdles, elevated costs and power-grid instability in South Africa raising concerns over refined output. Logistical frictions around Russian metal also limited spot liquidity. Demand remained supported by resilient hybrid-vehicle production, which requires higher palladium loadings in autocatalysts, while steady chemical and electronics consumption kept physical balances tighter than expected. The dollar index fell to 98.75, near a two-week low, while softer Treasury yields reduced the opportunity cost of holding non-yielding metals. Markets priced a 60% chance of a Fed rate hike next week, up from 50% before stronger US jobs data.

Palladium futures fell below $1,410 per ounce, although remaining near the same level since early August, continuing to be influenced by near-term investment flows following the latest US payrolls data, which reflected a resilient labor market, boosting expectations of a Fed rate hike and reducing demand for non-yielding palladium. Meanwhile, volatile fuel prices continue to dampen demand for internal-combustion-engine vehicles, although hybrid demand remains resilient. The European Union is facing pressure to include tariffs on hybrid vehicles from Chinese manufacturers in the existing duties on Chinese fully electric vehicles. Additionally, a coalition of major US automakers, including General Motors, Toyota, and Volkswagen, urged lawmakers to permanently ban Chinese vehicles, as Chinese automakers are rapidly gaining market share across major economies, which could support demand for palladium used in catalytic converters.

Palladium increased 5.03% to 1429 USD/t.oz