Palladium Hits 5-week Low

Palladium futures slipped below $1,450 per ounce, touching their lowest level in five weeks amid a broader selloff across precious metal markets.

The decline came as rising US inflation, fueled by escalating geopolitical tensions and higher energy prices, strengthened expectations that the Fed will keep interest rates elevated for longer.

Producer prices recorded their fastest annual increase since 2022 in April, while consumer inflation posted its strongest rise since 2023.

The stronger inflation outlook lifted the dollar and drove 10-year Treasury yields higher, reducing the appeal of non-yielding assets.

Despite the recent pullback, supply conditions remain relatively tight.

Production disruptions in South Africa and continued uncertainty surrounding Russian exports, still affected by sanctions and shifting trade routes, have kept the market sensitive to supply-side risks.

Palladium has declined 8.54% over the past four weeks, though prices remain up 50.36% compared with a year ago.