Palladium futures fell below $1,330 per ounce after trading near a two‑month high, pressured by concerns over the long‑term impact of rising electric vehicle (EV) adoption. While stronger demand for hybrid vehicles has offered some near‑term support to autocatalyst consumption, sentiment remains cautious as the broader shift toward EVs continues. EV sales posted a fifth consecutive monthly increase in July, reinforcing expectations that the palladium market may still swing into a global surplus.
At the same time, worries about potential power supply disruptions and maintenance-related constraints at South African mines, together with uncertainty over Russian exports, continued to provide a floor for prices. In parallel, weaker‑than‑expected US jobs and inflation data boosted expectations that the Federal Reserve will leave interest rates unchanged at its next meeting, a backdrop that generally benefits non‑yielding precious metals.
