FX.co ★ Palladium Hovers Near Nine-Month Low

Palladium was trading near $1,240 per ounce, hovering close to its lowest level since early October, as investors remained cautious about escalating tensions in the Middle East and their potential impact on inflation and monetary policy. The United States and Iran exchanged airstrikes following attacks on vessels near the Strait of Hormuz, and Washington revoked a 60‑day waiver that had allowed Iran to sell crude oil. The move pushed oil prices higher, reigniting concerns over supply disruptions and inflation.

Expectations that interest rates will remain elevated for longer continued to pressure non‑yielding assets such as palladium, with markets now pricing in another Federal Reserve rate hike by the end of 2026. While demand from internal combustion engine vehicles is steadily declining, increased substitution in favor of palladium in autocatalysts has offered some support to prices.

On the supply side, South Africa’s Sibanye‑Stillwater announced plans to advance seven primary platinum group metal mining projects, with the first phase already approved.