Palladium is up by 5.07%

Palladium rose toward $1,310 per ounce, reaching four-week highs as softer-than-expected US inflation reinforced expectations that the Federal Reserve will keep interest rates on hold. US consumer inflation eased to 3.5% year-on-year in June from 4.2% in May, prompting traders to abandon expectations of a rate hike at the Fed's July 28-29 meeting. The US dollar also weakened, making dollar-denominated precious metals more attractive to overseas buyers. Meanwhile, investors monitored developments in the Middle East after President Donald Trump withdrew a proposed 20% charge on cargo shipments through the Strait of Hormuz, while Brent crude remained near $86 a barrel after surging 11% over the previous two sessions amid renewed US threats to strike Iranian targets. Separately, Sibanye-Stillwater announced plans to advance seven platinum group metals mining projects in South Africa, with the first phase ahead of schedule and production expected to begin in March next year.

Palladium increased 5.07% to 1316.5 USD/t.oz

Palladium traded around $1,260 per ounce as investors weighed geopolitical risks against a weakening demand outlook. The US and Iran continued exchanging strikes, while uncertainty over the Strait of Hormuz kept oil prices elevated, amid conflicting claims over whether the waterway remained open. Rising inflation concerns reinforced expectations that the Federal Reserve will raise interest rates by year-end, weighing on sentiment of non-yielding assets. Meanwhile, demand for palladium remained under pressure as the shift toward electric vehicles continued to reduce consumption from gasoline-powered vehicles, while ongoing substitution by automakers in favor of platinum further limited the metal's upside. On the supply side, South Africa's Sibanye-Stillwater announced plans to advance seven primary platinum group metals mining projects, with the first phase already approved.