FX.co ★ Palladium Nears Highest Since 2022

Palladium futures remain steady above $1,950 per ounce, nearing their highest point since late 2022, driven by strong demand and limited supply. Heightened geopolitical tensions have spurred safe-haven purchases, while the EU’s recent adjustment to its anticipated 2035 ban on new gasoline and diesel vehicles has bolstered expectations for continued demand for automotive catalysts. As platinum prices increase, automakers might consider substituting palladium in catalysts for gasoline vehicles. Robust exports to China, supported by the inception of palladium futures on the Guangzhou Futures Exchange, have further enhanced market confidence. On the supply front, Norilsk Nickel, a major Russian mining firm, has forecasted that without accounting for investment demand, there could be a shortfall in the global palladium market of 100,000 ounces by 2026. Additionally, investors are attentively monitoring the results of the US Section 232 investigation and associated anti-dumping cases, amid concerns over possible tariffs or trade barriers.