Palladium Hovers Near October Levels

Palladium hovered near $1,260 an ounce, remaining slightly above its October lows, as traders assessed the metal's supply and demand outlook amid renewed escalation in Middle East tensions, which pushed oil prices higher and heightened market uncertainty. On the supply side, 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. However, current mine output in South Africa remains constrained, as elevated energy costs continue to pressure producers' margins and are set to rise further with higher winter electricity tariffs. On the demand side, resilient sales of hybrid vehicles continue to support palladium consumption, although battery electric vehicle registration continues to rise.

Palladium increased to 1327.00 USD/t.oz, the highest since June 2026. Over the past 4 weeks, Palladium lost 3.5%, and in the last 12 months, it increased 2.72%.

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.