Palladium Trades Near 1-Year Low

2026-10-12 11:43 By Larissa Caser 1 min. read

Palladium futures traded below $1,200 an ounce, remaining near its lowest level since September 2025, as both near and longer term outlooks remain subdued.

Tanker attacks in the Strait of Hormuz lifted oil prices and raised concerns over inflationary pressures, keeping traders cautious and providing some support.

However, while markets widely expect the Federal Reserve to leave interest rates unchanged this month, the prospect of a rate hike by year-end could weigh on investment flows into the metal.

Over the longer term, the growing adoption of electric vehicles continues to pressure demand for palladium used in catalytic converters, although resilient demand for hybrids has helped moderate the decline.

Despite this, the drop in demand continues to underpin a bearish outlook for the metal as it outpaces the contraction in supply, with elevated operating costs and power grid instability in South Africa, alongside ongoing trade risks in Russia, constraining production.



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Palladium Trades Near 1-Year Low
Palladium futures traded below $1,200 an ounce, remaining near its lowest level since September 2025, as both near and longer term outlooks remain subdued. Tanker attacks in the Strait of Hormuz lifted oil prices and raised concerns over inflationary pressures, keeping traders cautious and providing some support. However, while markets widely expect the Federal Reserve to leave interest rates unchanged this month, the prospect of a rate hike by year-end could weigh on investment flows into the metal. Over the longer term, the growing adoption of electric vehicles continues to pressure demand for palladium used in catalytic converters, although resilient demand for hybrids has helped moderate the decline. Despite this, the drop in demand continues to underpin a bearish outlook for the metal as it outpaces the contraction in supply, with elevated operating costs and power grid instability in South Africa, alongside ongoing trade risks in Russia, constraining production.
2026-10-12
Palladium is down by 5.15%
Palladium decreased 5.15% to 1114 USD/t.oz
2026-10-07
Palladium Falls to 1-Year Low
Palladium futures fell below $1,230 an ounce to their lowest level since September 2025, pressured by investment flows and a weaker demand outlook. Elevated energy prices have fueled concerns over persistent inflation and debt affordability, pushing sovereign yields to multi-year highs and increasing the opportunity cost of holding non-yielding assets such as palladium. Additional supply could also weigh on prices, as a state-owned firm in Zimbabwe, the world’s third-largest platinum-group metal reserves, plans to develop a mining project in Darwendale next year. Over the longer term, however, rapid AI infrastructure expansion could support demand. Adding to the bearish pressure 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.
2026-10-07