Palladium prices rose during Wednesday’s trading, supported by optimism in global markets as the United States moves closer to ending its longest-ever government shutdown — a development seen as a potential boost to demand.

The U.S. Senate made notable progress earlier this week after Republicans and Democrats reached an agreement on a bill to fund the government through January 30, paving the way to end the record-breaking shutdown that began in early October.

According to Capital.com, palladium prices have surged about 26% since the start of October to around $1,500 per ounce. This sharp rally came in tandem with gains in the platinum market and a broader easing in global financial conditions.

Expectations for U.S. interest rate cuts and a weaker dollar have also supported palladium’s rally as part of the broader “Gold + Liquidity” wave that has lifted precious metals in recent weeks.

Palladium is used almost exclusively in catalytic converters for gasoline engines, meaning that U.S. automakers and electronics manufacturers could face sharp fluctuations in costs.

Technical analysis from Monex indicates resistance between $1,500 and $1,520 per ounce, with expectations that the overall trend will remain bullish but volatile in the near term.

Analysts at CPM Group noted that palladium’s recent strength is “closely linked to platinum’s performance,” while warning that persistent U.S. labor market weakness and elevated inflation could pose obstacles to demand growth.

Despite the announcement of what has been described as a “truce” trade deal between Washington and Beijing, comments from U.S. officials suggest that tensions remain high. The U.S. Treasury Secretary said China remains an unreliable trade partner, while President Donald Trump stated that his administration will not allow the export of advanced Nvidia chips to China or other nations.

Meanwhile, the U.S. dollar index rose 0.1% to 99.5 points by 15:15 GMT, reaching a high of 99.7 and a low of 99.4.

As for trading performance, December palladium futures were up 1.1% at $1,490 per ounce as of 15:15 GMT.

Bitcoin fell on Wednesday, extending its recent losses as improved risk appetite in broader markets—driven by progress toward reopening the U.S. government—failed to spark meaningful buying in cryptocurrencies.

The world’s largest digital asset dropped 1.8% to $103,344.1 by 12:28 a.m. Eastern Time (05:28 GMT), after briefly touching $102,737.9 earlier in the day.

Bitcoin has struggled to regain momentum following sharp losses in early November, when it briefly dipped below the $100,000 mark. The recent recovery in risk sentiment across global markets hasn’t reached the crypto space, as traders have favored equities over digital assets.

U.S. Government Nears Reopening as House Prepares Vote

The U.S. government is close to ending its longest-ever shutdown this week, after the Senate on Monday passed a measure to extend funding through January 30.

The bill now heads to the House of Representatives, where the Republican majority has signaled its intent to approve it in a vote expected Wednesday, before sending it to President Donald Trump for final signature.

Optimism over an imminent end to the 42-day shutdown lifted risk assets such as equities, but traders remained largely cautious toward cryptocurrencies amid growing skepticism over Bitcoin Treasury holdings and corporate reserve claims.

China Accuses the U.S. of Stealing $13 Billion in Bitcoin

China’s cybersecurity authority on Tuesday accused the U.S. government of stealing roughly $13 billion worth of Bitcoin.

The allegations concern the theft of 127,272 Bitcoins from the Chinese mining pool *LuBian* in December 2020, one of the largest digital heists in history.

According to Chinese officials, the breach was a “state-level cyberattack” allegedly orchestrated by the United States.

JPMorgan Launches Institutional Digital Token

JPMorgan Chase & Co. this week began rolling out a new digital deposit token called *JPM Coin* for institutional investors, marking another step in the bank’s expansion into digital asset markets.

The token represents dollar deposits held at the bank and allows users to send and receive funds over Coinbase’s *Base* blockchain network, Bloomberg reported Wednesday.

Broad Crypto Decline Continues

Cryptocurrency prices broadly tracked Bitcoin lower as investor sentiment toward the sector remained weak.

Ether, the world’s second-largest cryptocurrency, fell 2.8% to $3,448.93, while XRP dropped 3.1% to $2.3986.

Oil prices fell by about 1% on Wednesday, pressured by a supply glut in the market, though expectations that the end of the longest U.S. government shutdown in history could boost demand limited losses.

Brent crude futures dropped 60 cents, or 0.9%, to $64.56 a barrel by 10:07 GMT, after rising 1.7% on Tuesday. U.S. West Texas Intermediate (WTI) crude fell 62 cents, or roughly 1%, to $60.42 a barrel, after climbing 1.5% in the previous session.

Ole Hansen, head of commodity strategy at Saxo Bank, said, “Both WTI and Brent remain trapped in a defined trading range, with short-term speculation being the main driver of market activity.”

Analysts have previously noted that excess supply continues to cap price gains. Earlier this month, the OPEC+ alliance agreed to freeze production increases for the first quarter of next year after starting to unwind its earlier cuts in August.

However, Tony Sycamore, an analyst at IG Markets, wrote in a note that reopening the U.S. government could boost consumer confidence and economic activity, potentially stimulating demand for crude oil.

The U.S. House of Representatives, controlled by Republicans, is scheduled to vote later on Wednesday on a bill already approved by the Senate to fund government agencies through January 30.

Hansen added, “While long-term demand prospects remain strong, the short-term outlook still points to oversupply, which limits the potential for price gains.”

Meanwhile, the International Energy Agency (IEA) said in its annual *World Energy Outlook* report released Wednesday that demand for oil and gas could continue to grow until 2050.

This marks a shift from its previous projections, which suggested global oil demand would peak this decade. The agency has revised its modeling approach, moving away from climate pledge–based scenarios toward one that reflects current, existing policies.

Both the Organization of the Petroleum Exporting Countries (OPEC) and the U.S. Energy Information Administration (EIA) are expected to release their respective forecasts later on Wednesday.

The Japanese yen fell to its weakest level in nine months against the U.S. dollar on Wednesday, prompting fresh verbal warnings from Japanese officials in an effort to stem the currency’s decline, while the dollar edged higher ahead of the expected end of the U.S. government shutdown.

During European trading hours, the yen dropped to 154.82 per dollar — its lowest since February — before Finance Minister Satsuki Katayama intervened verbally to slow the slide.

Katayama said it was important for exchange rates to move in a stable manner that reflects economic fundamentals, noting that markets had recently seen “one-sided and rapid movements” in the yen’s value.

Mohamed Al-Sarraf, currency strategist at Danske Bank, commented that “verbal intervention is no longer as powerful as it once was,” adding, “for Japanese authorities to strengthen the yen meaningfully, direct market intervention may be necessary — a possibility within the coming months.”

Since early October, the yen has lost roughly 4.5% of its value, pressured by expectations of increased fiscal spending under new Prime Minister Sanae Takaichi and by improved global risk appetite amid optimism that the U.S. government shutdown will soon end.

Takaichi said Wednesday she “strongly hopes” the Bank of Japan will pursue a monetary policy that stabilizes inflation around 2%, driven by wage growth rather than higher import and commodity prices.

The yen also hit its weakest level since the euro’s inception, trading at 179.235 against the European currency.

Is the U.S. government reopening soon?

The Republican-controlled U.S. House of Representatives is expected to vote Wednesday afternoon on a deal to restore funding to federal agencies and end the shutdown that began on October 1.

Ending the shutdown would allow the release of key economic data, helping both investors and the Federal Reserve assess the health of the U.S. economy.

The U.S. dollar edged slightly higher on Wednesday, recovering part of its previous session’s losses, after data from ADP showed private-sector firms shed over 11,000 jobs per week in late October.

The report weighed on the dollar as it reinforced expectations for a potential Fed rate cut in December, though traders still see roughly a two-thirds chance of that outcome amid the ongoing data blackout.

Several Fed officials, including Chair Jerome Powell, have suggested that the lack of economic data could lead the central bank to keep rates unchanged at its next meeting.

Mohamed Al-Sarraf of Danske Bank said, “The main driver for the dollar now is what happens at the December Fed meeting,” adding that “while there’s some softness in the labor market, growth remains solid and core inflation is near 3%, so the Fed cannot ease aggressively.”

The U.S. dollar index, which measures the greenback’s performance against a basket of major peers, rose 0.1% to 99.58.

The British pound fell 0.2% to $1.3121, while the euro slipped 0.1% to $1.1575.

The Australian dollar gained 0.2% to $0.6538, while the New Zealand dollar was little changed at $0.5655.

A senior official at the Reserve Bank of Australia said Wednesday that policymakers are increasingly debating whether the current 3.6% cash rate is sufficiently restrictive to curb inflation, noting that this question “will be critical in shaping the next phase of monetary policy.”