Palladium futures retreated toward $1,570, erasing recent gains amid broad weakness across the platinum group metals complex. The pullback followed a stronger US dollar and rising Treasury yields, both of which pressured precious metals, while heightened geopolitical uncertainty contributed to choppy trading conditions.
Persistent tensions between Donald Trump and Iranian officials continue to undermine diplomatic prospects ahead of a looming ceasefire deadline, with uncertainty around the Strait of Hormuz further unsettling markets. Escalating rhetoric — from warnings of major strikes to Iran’s firm rejection of key US demands — has amplified risk-driven volatility across commodities.
Still, downside pressure on palladium was partly offset by supportive longer-term demand expectations. Nornickel is progressing research into the use of palladium in lithium-sulphur batteries, focusing on enhancing durability for next-generation EV systems. The initiative aims to extend battery lifespans beyond 1,000 charge cycles, a key threshold for large-scale commercial deployment.