Palladium Climbs to $1,270
2026-07-02 15:40
By
Larissa Caser
1 min. read
Palladium climbed above $1,270 per ounce, recovering to levels last seen in early October as a weaker US dollar supported precious metals.
Oil prices continued to decline as tanker traffic normalized amid ongoing peace negotiations, although uncertainty over a lasting agreement persists.
The dollar softened after weaker-than-expected US payroll and lower inflation data reduced expectations of further Fed rate hikes this year, improving the appeal of dollar-denominated metals.
However, Fed Chair Kevin Warsh reiterated the commitment to returning inflation to its 2% target.
On the supply side, Russia's Norilsk Nickel, the world's largest palladium producer, expects output to decline 2% this year due to lower ore grades, while South African platinum group metal mines continue to face operational constraints.
Demand remains under pressure as China's electric vehicle exports surged 49% year-on-year, accelerating the demand shift away from palladium used in automotive catalytic converters.