FX.co ★ Palladium Climbs to Three-Year High

Palladium futures surged past $2,000 per ounce, signaling the highest level in more than three years, driven by escalating concerns over supply amid rising geopolitical tensions. Weekend reports indicating the possibility of Canada facing 100% tariffs should it proceed with a trade agreement with China further fueled fears of potential disruptions in North American metal supplies, especially considering Canada's significant role as a key global palladium producer. Additionally, price support came as UBS increased its palladium forecast by $300, setting it at $1,800 per ounce, due to strong investment inflows. Demand also saw a boost from China, where the introduction of yuan-based platinum futures in Guangzhou enhanced trading activities within the platinum group metals sector. Thus far in the year, palladium has climbed by 25.78%. Despite the reduction in industrial usage for automotive catalytic converters caused by the rise of electric vehicles, constrained supply coupled with sustained investor interest points towards the likelihood of further gains in the short-term outlook.