Palladium Slides to 1-Year Low
Palladium futures fell to around $1,170 per ounce, reaching a one-year low, pressured by a stronger US dollar and elevated Treasury yields as investors awaited US payrolls data for clues on the Federal Reserve’s rate path. The dollar climbed to a 17-month high, while 10-year Treasury yields rose to their highest level since 2002, making dollar-priced metals more expensive for overseas buyers and reducing the appeal of non-yielding assets. Meanwhile, expectations of weaker automotive demand and a shift toward a market surplus, amid declining gasoline vehicle production and higher recycling, have added to longer-term pressure on palladium prices. On the supply side, lower mine output, particularly from Russia, is expected to limit the downside, although increased recycling is likely to offset part of the decline. Year-to-date, palladium has dropped 28.40%.
Palladium futures fell to around $1,170 per ounce, reaching a one-year low, pressured by a stronger US dollar and elevated Treasury yields as investors awaited US payrolls data for clues on the Federal Reserve’s rate path. The dollar climbed to a 17-month high, while 10-year Treasury yields rose to their highest level since 2002, making dollar-priced metals more expensive for overseas buyers and reducing the appeal of non-yielding assets. Meanwhile, expectations of weaker automotive demand and a shift toward a market surplus, amid declining gasoline vehicle production and higher recycling, have added to longer-term pressure on palladium prices.
On the supply side, lower mine output, particularly from Russia, is expected to limit the downside, although increased recycling is likely to offset part of the decline. 40%.