FX.co ★ Palladium Retreats from Multi-Year High

Palladium futures have declined to around $1,900 per ounce, pulling back from their highest levels in over three years. This decline is in tandem with a broader downturn in platinum group metals. The sell-off is largely attributed to profit-taking activities and a stronger US dollar, which has gained as investors brace for significant US monetary policy developments. Market participants are keenly observing President Donald Trump's announcement expected on Friday morning regarding his pick for the Federal Reserve chair, which will conclude a lengthy selection process and has been pivotal in shaping expectations for the central bank's future trajectory. On the supply front, there are heightened short-term concerns due to a forthcoming review of the Canada–United States–Mexico trade agreement and persistent threats of a 50% tariff, especially considering Canada's pivotal role as a major palladium supplier globally. Despite the recent pullback, palladium has appreciated by 16.41% year-to-date, buoyed by steady demand amid a slowdown in the adoption of electric vehicles.