Palladium Holds Near 2-Month High

Palladium futures climbed toward $1,370 per ounce, remaining near more than two-month highs as reduced expectations for a Federal Reserve rate hike and broader strength across precious metals supported demand.

Markets price in about a 50% chance of a September Fed hike, down from 60% before last week’s weaker-than-expected US jobs report, with lower rates generally supporting non-yielding precious metals.

Meanwhile, heightened geopolitical tensions supported precious metals, as attacks on shipping by the US and Yemen’s Iran-aligned Houthis and uncertainty over the Iran conflict kept safe-haven demand elevated.

On the supply front, concerns over disruptions in South Africa and uncertainty over Russian exports continue to support prices, with extended maintenance at South African processing facilities reducing refined PGM output amid tight inventories.

Over the past month, palladium has risen 9.58% and is up 21.67% year-on-year.