Palladium Rises on Supply, Dollar Weakness

2026-09-09 07:03 By Mariene Camarillo 1 min. read

Palladium futures strengthened to around $1,360 per ounce, recovering from recent losses as supply risks, resilient automotive demand and a weaker US dollar supported prices.

Supply concerns persisted in South Africa and Russia, which together account for the vast majority of global mined output, with operational hurdles, elevated costs and power-grid instability in South Africa raising concerns over refined output.

Logistical frictions around Russian metal also limited spot liquidity.

Demand remained supported by resilient hybrid-vehicle production, which requires higher palladium loadings in autocatalysts, while steady chemical and electronics consumption kept physical balances tighter than expected.

The dollar index fell to 98.75, near a two-week low, while softer Treasury yields reduced the opportunity cost of holding non-yielding metals.

Markets priced a 60% chance of a Fed rate hike next week, up from 50% before stronger US jobs data.



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Palladium Rises on Supply, Dollar Weakness
Palladium futures strengthened to around $1,360 per ounce, recovering from recent losses as supply risks, resilient automotive demand and a weaker US dollar supported prices. Supply concerns persisted in South Africa and Russia, which together account for the vast majority of global mined output, with operational hurdles, elevated costs and power-grid instability in South Africa raising concerns over refined output. Logistical frictions around Russian metal also limited spot liquidity. Demand remained supported by resilient hybrid-vehicle production, which requires higher palladium loadings in autocatalysts, while steady chemical and electronics consumption kept physical balances tighter than expected. The dollar index fell to 98.75, near a two-week low, while softer Treasury yields reduced the opportunity cost of holding non-yielding metals. Markets priced a 60% chance of a Fed rate hike next week, up from 50% before stronger US jobs data.
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