Palladium is down by 5.03%

Palladium futures hovered near $1,300 per ounce, retreating after recent gains to trade near an eight-month low as investors reassessed the outlook for US monetary policy and global economic conditions. Sentiment across the platinum-group metals complex weakened as higher energy prices fueled inflation concerns, reinforcing expectations of elevated interest rates. Additional pressure came from a stronger US dollar, which advanced for a third consecutive session after Federal Reserve officials signaled that borrowing costs may need to stay elevated if inflation proves persistent. Market participants also turned their attention to upcoming US labor market data for further clues on the Fed's policy path. Beyond macroeconomic pressures, palladium remained weighed down by weaker catalytic converter demand amid the shift toward electric vehicles. Still, losses were limited by tight supply conditions, including disruptions in South Africa and uncertainty surrounding Russian exports.

Palladium decreased 5.03% to 1322.5 USD/t.oz

Palladium futures fell below $1,400 per ounce, easing after a brief period of stabilization as investors assessed the inflationary impact of rising energy prices and growing expectations that interest rates may remain elevated for longer. Renewed US military strikes on Iranian targets near the Strait of Hormuz deepened concerns over global energy supply disruptions, pushing Brent crude up 2% to $96.15 per barrel and reinforcing expectations that major central banks may delay monetary easing. A stronger US dollar and higher Treasury yield outlook also weighed on sentiment toward non-yielding precious metals. Still, palladium continued to draw support from tight supply conditions, as ongoing production challenges in South Africa and uncertainty surrounding Russian exports kept supply concerns elevated. Despite recent weakness, palladium prices remain 42.87% higher than a year ago, although they have fallen 6.19% over the past month.