Palladium Falls to Seven-Week Low
Palladium futures held near $1,270 per ounce, its lowest level since early August, amid surging sovereign yields. Stronger-than-expected economic data from the Eurozone and the US raised bets of further hikes in the major economies, while underlying evidence of inflationary pressures raised concerns over the impact of persistent disruptions to energy shipments in the Middle East. Hawkish remarks from several Fed officials also increased the opportunity cost of holding non-yielding assets such as palladium. Meanwhile, UBS forecasts a market surplus for the metal, as increased recycling and weaker consumption of catalytic converters are expected to more than offset lower mining output compared with last year. Persistent supply vulnerabilities in South Africa, linked to elevated operating costs and power grid instability, continued to raise concerns over mined output, while ongoing trade and geopolitical risks affecting Russian palladium also provided a supportive backdrop for prices.
Palladium futures held near $1,270 per ounce, its lowest level since early August, amid surging sovereign yields. Stronger-than-expected economic data from the Eurozone and the US raised bets of further hikes in the major economies, while underlying evidence of inflationary pressures raised concerns over the impact of persistent disruptions to energy shipments in the Middle East. Hawkish remarks from several Fed officials also increased the opportunity cost of holding non-yielding assets such as palladium.
Meanwhile, UBS forecasts a market surplus for the metal, as increased recycling and weaker consumption of catalytic converters are expected to more than offset lower mining output compared with last year. Persistent supply vulnerabilities in South Africa, linked to elevated operating costs and power grid instability, continued to raise concerns over mined output, while ongoing trade and geopolitical risks affecting Russian palladium also provided a supportive backdrop for prices.