Palladium extends losses towards $900

Palladium prices dipped on Tuesday and approached $900, as the dollar traded mostly flat against a basket of major rivals. 

Palladium was recently underpinned by copper’s recent spike, which buoyed most industrial metals.

It was also slightly boosted by speculation the Federal Reserve will cut interest rates at least once this year. 

Palladium marked a loss of 7.91% in the first quarter, while platinum marked a 8.77% loss in the same period. 

Palladium then managed to surpass $1000 in late May, as most industrial metals edged higher from the first quarter’s lows. 

Platinum and palladium have important industrial implications, and thus are impacted by economic developments more so than their status as precious metals. 

Palladium 

Palladium is used heavily in the automotive sector, and especially in diesel cars to reduce exhaust fumes.

However, as EV cars adoption spreads, demand on internal combustion cars and palladium in turn will decline accordingly. 

Palladium’s Historical Pricing 

Across the previous decade, palladium’s instant prices wavered between $500 and $1500, beforere surging to a record high at $3440 in March 2022 following the onset of the Russian invasion of Ukraine, which disrupted supplies. 

However palladium now has lost over two thirds of its valuation due to steep increase in EV adoption rates. 

Otherwise, the dollar index fell 0.1% as of 17:30 GMT to 104.1, with a session-high at 104.3, and a low at 103.9.

Palladium futures due in June fell by 1.2% as of 17:31 GMT to $902 an ounce.