Palladium futures rise toward $1,360/oz on supply fears, weaker dollar

Palladium futures strengthened to around $1,360 per ounce, recovering from recent losses as supply risks, resilient automotive demand and a weaker US dollar supported prices. Supply concerns remained centered on South Africa and Russia, which together account for the vast majority of global mined output. Operational hurdles, elevated costs and power-grid instability in South Africa continued to raise concerns over refined output, while logistical frictions around Russian metal also limited spot liquidity. Demand was still underpinned by resilient hybrid-vehicle production, which requires higher palladium loadings in autocatalysts.

Steady chemical and electronics consumption also kept physical balances tighter than expected. 75, near a two-week low, while softer Treasury yields lowered the opportunity cost of holding non-yielding metals. Markets priced a 60% chance of a Fed rate hike next week, up from 50% before stronger US jobs data.