FX.co ★ Palladium Gains on Geopolitical Tensions

Palladium futures have climbed above $1,800 per ounce, experiencing a rebound due to short-term supply concerns heightened by rising geopolitical risks. The tension has increased following U.S. President Donald Trump's threat to impose additional tariffs on several European countries, amid the ongoing disagreement over Greenland, which has strained relations with key allies. Global markets have once again been thrown into a state of uncertainty as Trump has connected possible trade penalties to the U.S.'s interest in Denmark's Arctic territory. On a policy note, investors are now anticipating that the Federal Reserve will maintain current interest rates during its meeting on January 27-28, while markets are also factoring in the likelihood of two cuts of 25 basis points each later in the year. Earlier this week, palladium prices declined after Trump announced a temporary pause on import tariffs for critical minerals, including palladium, which momentarily alleviated market worries about disruptions in supply.