Palladium futures fall below $1,315 an ounce toward three-week low

Palladium futures slipped below $1,315 an ounce, moving toward their lowest level since mid-August, as the metal stayed driven by near-term investment flows. Economic uncertainty tied to the conflict in the Middle East has lifted expectations of tighter policy across major economies, which has weighed on demand for the non-yielding metal. The ECB raised its policy rate at its September meeting, while higher US producer inflation prompted investors to add to bets on a Fed rate hike next week. UBS expects a palladium market surplus, saying increased recycling and weaker catalytic-converter consumption should more than offset lower mining output compared with last year.

Russian palladium exports to China doubled in the first seven months of the year.