Palladium Rebounds From Three-Week Low

Palladium futures rose to around $1,320 per ounce, rebounding from three week lows as a softer US dollar and short covering supported prices ahead of the Federal Reserve's policy decision. Palladium gained alongside broader gains across precious metals, with markets pricing a 92.4% chance of at least a 25 basis point rate hike. Fluctuations in Treasury yields also encouraged buying of dollar denominated commodities, while stretched short positioning after recent losses prompted further covering. Meanwhile, persistent supply vulnerabilities in South Africa, linked to elevated operating costs and power grid instability, continued to raise concerns over mine output. Ongoing trade and geopolitical risks affecting Russian palladium also provided a supportive backdrop for prices.