Palladium is up by 5.03%

Palladium futures fell below $1,410 per ounce, although remaining near the same level since early August, continuing to be influenced by near-term investment flows following the latest US payrolls data, which reflected a resilient labor market, boosting expectations of a Fed rate hike and reducing demand for non-yielding palladium. Meanwhile, volatile fuel prices continue to dampen demand for internal-combustion-engine vehicles, although hybrid demand remains resilient. The European Union is facing pressure to include tariffs on hybrid vehicles from Chinese manufacturers in the existing duties on Chinese fully electric vehicles. Additionally, a coalition of major US automakers, including General Motors, Toyota, and Volkswagen, urged lawmakers to permanently ban Chinese vehicles, as Chinese automakers are rapidly gaining market share across major economies, which could support demand for palladium used in catalytic converters.

Palladium increased 5.03% to 1429 USD/t.oz

Palladium futures fell to around $1,350 per ounce, extending losses for a second session after hitting three-month highs, as a stronger dollar and higher US Treasury yields weighed on the metal following hawkish signals from Federal Reserve Chair Kevin Warsh. Palladium also faced pressure from increased expectations of a September rate hike, with markets awaiting key US labour market data, including the ADP employment report and nonfarm payrolls, for further clues on the Fed’s policy path. Meanwhile, higher oil prices amid escalating tensions in the Strait of Hormuz lifted inflation expectations, adding to pressure on palladium. The metal fell more than 4.3% on Monday after Warsh signalled that policymakers may need to do more if inflation fails to move back toward the Fed’s 2% target. On the supply front, constrained mine output in major producing regions continued to provide some support, though supply concerns were outweighed by broader macroeconomic pressures.