FX.co ★ Palladium Pulls Back from One-Week High

Palladium futures remained steady around $1,760 per ounce, pulling back from a recent one-week high, as investors assessed varied US economic data and kept an eye on geopolitical events. The US job market showed signs of strength, with weekly jobless claims increasing slightly but still falling short of forecasts, maintaining historically low levels. Concurrently, job cuts for December were at their lowest since July 2024. Financial markets currently estimate a 90% likelihood that the Federal Reserve will maintain current interest rates, although traders continue to predict several rate cuts later in the year. On the geopolitical scene, the US is making moves to gain control over Venezuelan oil resources through a preliminary supply agreement, while discussions about Greenland’s sovereignty and strategic importance remain ongoing. Looking ahead, the palladium market’s outlook for 2026 will hinge on factors such as the recovery of mining output, an increase in recycling activities, and trends in automotive demand. According to the World Platinum Investment Council (WPIC), the market may transition from a minor deficit to a modest surplus.