Palladium fell 2.6% in morning trading as rising Treasury yields and a firmer dollar erased an early boost from softer inflation data. The metal now trades near its 52-week low, isolated from gains in gold and platinum by weak automotive demand.
Palladium spot price slid 2.6% to $1,175.26 in morning trading, pressured by elevated U.S. Treasury yields, a firmer dollar, and cautious positioning ahead of Friday's September Nonfarm Payrolls report. The drop extends weeks of macro headwinds that have weighed on the metal.
Yields erase an inflation-driven lift
Headline PCE inflation data came in at 3.4% year-over-year, below consensus expectations, while core PCE rose just 0.2% month-over-month in the prior session, offering a brief reprieve for precious metals. But the relief faded quickly as the 10-year Treasury yield pushed toward levels last seen more than two decades ago, reinforcing the opportunity cost of holding a zero-yield asset like palladium. A firmer dollar compounded the pressure, making dollar-denominated metals more expensive for international buyers.
Auto demand keeps palladium isolated
Palladium's decline stood in contrast to modest gains in gold and platinum the same session, underscoring the metal's vulnerability to softening automotive demand, its primary end-use market. Palladium has already fallen from its 52-week high of $2,183.86. It now trades near its 52-week low of $1,153.92, reflecting months of selling tied to subdued catalytic converter demand and uncertainty about the auto industry's recovery.
U.S. equities also traded lower, with the S&P 500 off 0.3% and the Dow Jones down 0.6%, reflecting a broadly cautious market tone. Elevated yields, a resilient dollar, pre-payrolls caution, and automotive demand headwinds together pushed palladium to a session low of $1,165.74 before it pared some losses, still well below its opening price of $1,206.75.
Source: Commodities & Futures News
Trading involves risk.
Risk Disclaimer
