FX.co ★ Palladium Extends Gains to One-Week High

Palladium futures rose to around $1,350 per ounce, extending gains to a one-week high, as a weaker US dollar and renewed demand for precious metals supported prices. The greenback retreated after the US Treasury unexpectedly expanded long-dated debt buybacks, with Treasury Secretary Scott Bessent indicating purchases could exceed $4 billion per issue. That move initially eased yield pressures and boosted non-yielding metals.

Palladium also drew strength from broad-based gains across the precious metals complex, with gold heading for a third consecutive weekly advance. Even so, the upside for palladium may be capped as recovering Treasury yields and higher energy prices keep inflation risks elevated and reinforce expectations for further interest rate hikes.

Geopolitical tensions added another layer of support: escalating strains between the US and Iran, including threats of tougher economic measures, underpinned safe-haven demand. On the supply side, ongoing concerns about reduced Russian palladium output and lower refined production due to processing disruptions in South Africa continued to provide a firm underpinning for prices.