FX.co ★ Palladium Pulls Back from 3-Year High

Palladium prices experienced a reduction, falling to $1,850 per ounce from a three-year peak of $2,200 on January 26th. This drop reflects a broader downward trend among platinum group metals, driven by a dollar rebound that led markets to reassess speculative positions. These positions had sparked an unprecedented surge in precious metal prices this month. The dollar's recovery occurred as gold and platinum assets surrendered previous gains, with increasing concerns that the rallies were not grounded in economic fundamentals. The dollar's strength was further bolstered by Kevin Warsh's nomination as the prospective Federal Reserve Chairman. Warsh is known for his hawkish policies during the global financial crisis. On the supply front, short-term apprehensions were intensified by an impending review of the Canada–United States–Mexico trade agreement and the ongoing threat of a 50% tariff, heightened by Canada’s pivotal role as a leading global palladium supplier.