Palladium futures slip below $1,330 after 2-month high

Palladium futures slipped below $1,330 per ounce after hovering near a two-month high, weighed by concerns over the long-term impact of growing electric vehicle demand.

Although rising hybrid vehicle demand has provided near-term support for autocatalyst consumption, markets remain cautious amid the broader shift in demand toward EVs, which recorded a fifth consecutive monthly increase in July, as the palladium market could still record a global surplus.

On the other hand, concerns over power supply disruptions and maintenance bottlenecks at South African mines, alongside uncertainty surrounding Russian exports, continued to underpin prices.

Meanwhile, market expectations that the Federal Reserve will keep borrowing costs unchanged at the next meeting increased following weaker-than-expected jobs and inflation data, generally supporting non-yielding precious metals.