FX.co ★ Palladium Rebounds as Fed Concerns Offset Geopolitical Relief

Palladium futures maintained levels above $1,900 per ounce, recovering from prior declines as concerns about the Federal Reserve's independence counterbalanced reduced geopolitical tensions. This followed President Donald Trump's decision to retract proposed tariffs on eight European countries. Additionally, Trump introduced a framework aimed at enhancing transatlantic cooperation and dismissed the possibility of military intervention in Greenland. He also indicated that he is close to appointing a new Fed chair, expressing support for keeping Kevin Hassett, the White House economic adviser, on the Fed Board. This has sparked worries regarding the central bank's autonomy. Palladium continues to trade near its peaks since 2022, driven by robust industrial demand. China's industrial production in December saw a 5.2% year-on-year increase, surpassing expectations and highlighting the resilience of global manufacturing, which in turn continues to support the demand for metals.