FX.co ★ Palladium Falls to 8-Month Low

Palladium futures hovered around $1,300 per ounce, easing after recent gains to remain close to an eight-month low as investors reassessed the outlook for US monetary policy and the global economy. Sentiment across the platinum-group metals complex deteriorated as rising energy prices stoked inflation concerns, reinforcing expectations that interest rates will stay elevated. A firmer US dollar added further pressure, advancing for a third straight session after Federal Reserve officials signaled that borrowing costs may need to remain high if inflation proves persistent.

Market participants also focused on upcoming US labor market data for additional guidance on the Fed’s policy trajectory. Beyond macroeconomic headwinds, palladium continued to be weighed down by softer demand for catalytic converters amid the accelerating shift toward electric vehicles. However, losses were partially offset by tight supply conditions, including production disruptions in South Africa and uncertainty surrounding exports from Russia.