FX.co ★ Palladium Approaches October Peak

Palladium futures have remained steady around $1,490 per ounce, reaching their highest point since mid-October. This movement follows investor analysis of the Federal Reserve's recent monetary policy decisions alongside signs of increased global vehicle demand. In December, the Federal Reserve reduced the federal funds rate by 25 basis points, aligning with widespread expectations. Additionally, Fed Chair Jerome Powell signaled that any further rate increases are unlikely in the near term. On the supply front, there was a 3.9% year-on-year increase in South Africa's platinum-group metals production in October, marking a continued recovery after a decline in August. Demand outlook appears positive, with China's automotive sales rising by 3.4% year-on-year in November, reaching the highest level in 11 months. Moreover, the European Union is approaching a critical decision on vehicle carbon emission regulations on December 16. Although a complete ban on internal combustion engine vehicles was originally planned for 2035, industry lobbying and a slower transition pace may result in an extension to 2040.