Palladium Rebounds From 16-Month Low

Palladium futures rose above $935 an ounce but remained near their lowest level since June 2025, following a Democratic sweep in the US midterm elections.

The results could complicate President Trump’s foreign policy agenda and efforts to secure additional funds for the war with Iran.

Still, markets continue to price in further monetary tightening as still elevated energy costs linked to the Middle East conflict fuel inflation concerns.

Higher rates put downward pressure in investment demand for the non-yielding metal.

Meanwhile, the auto sector, which accounts for over 80% of palladium demand, faces pressure from rapid EV adoption, weak vehicle sales and tighter consumer spending amid the conflict.

Still, a modest recovery is expected in 2027 amid stable hybrid-catalyst driven demand.

Constrained output from Russia, the world's largest palladium producer, offers some support, with Nornickel warning that an overhaul at one of its plants could extend into 2028.