Palladium is down by 5.17%

Palladium decreased 5.17% to 1210 USD/t.oz

Palladium decreased 5.02% to 1212 USD/t.oz

Palladium futures fell below $1,230 per ounce, trading near its lowest level in three months, as elevated oil prices boosted bets on higher-for-longer interest rates and weakened near-term investment flows. The lack of progress in diplomatic talks between the US and Iran over the Strait of Hormuz left global oil prices volatile. As a result, traders are increasingly pricing in further rate hikes by major economies, including the ECB and the US Federal Reserve, raising the opportunity cost of holding the non-yielding metal and reducing investment demand. In the long-term, UBS forecasts a market surplus for the metal, as a decline in automotive demand is expected to more than offset lower mined output in South Africa, where elevated operating costs and power grid instability remain concerns, and Russia, where ongoing trade risks continue to weigh on supply.