FX.co ★ Palladium Hits Two Week High

Palladium futures are on the rise, approaching $1,873 per ounce, as they rebound from recent dips and achieve a two-week peak. This surge is part of a broader upswing in precious metals, fueled by the anticipation of interest rate reductions by the US Federal Reserve and ongoing market uncertainties. Investors are now forecasting two reductions of 25 basis points each in the federal funds rate, expected in June and September, suggesting a shift toward a more lenient monetary policy. Additionally, palladium is experiencing increased demand as a safe-haven asset due to a US federal inquiry involving Fed Chair Jerome Powell, which has heightened political frictions between President Trump and the Federal Reserve, thereby shaking confidence in US political stability. In a separate development, Bank of America has adjusted its 2026 average price outlook for platinum and palladium upward, citing ongoing supply constraints exacerbated by global trade disruptions and robust demand from China, factors that continue to bolster the physical market.