FX.co ★ Palladium Near Two-Week High

Palladium is currently trading at approximately $1,420 an ounce, marking a peak not seen since mid-November. This price strength is attributed to two main factors: the introduction of palladium futures in China and increasing market expectations of a more accommodative stance by the Federal Reserve during its December meeting. On November 27, the Guangzhou Futures Exchange began officially offering palladium futures, granting industry stakeholders novel hedging opportunities and boosting confidence regarding Chinese demand. So far, palladium has appreciated roughly 40% this year, though it trails behind other major precious metals like gold, silver, and platinum in terms of performance. In the near future, palladium prices are likely to remain highly reactive to developments in the US Department of Commerce’s Section 232 investigation concerning critical minerals, as well as the outcome of an anti-dumping petition submitted by the mining company Sibanye alongside the United Steelworkers union. Both traders and industry participants eagerly await the verdict on possible import tariffs. Looking forward, a modest supply deficit in the palladium market is expected to continue until at least 2026.