Bearish
Palladium prices remain near one-year lows amid subdued demand and supply concerns.
Palladium futures have been trading below $1,200 per ounce, approaching their lowest levels since September 2025. This decline is driven by a combination of factors, including subdued demand due to the growing adoption of electric vehicles and supply constraints from major producers like Russia and South Africa. Additionally, geopolitical tensions, such as recent tanker attacks in the Strait of Hormuz, have raised concerns over inflationary pressures, further impacting market sentiment.
Key points
- Palladium futures fell to $1,143 per ounce on October 12, 2026, down 0.65% from the previous day.
- The growing adoption of electric vehicles continues to pressure demand for palladium used in catalytic converters, contributing to a bearish outlook for the metal.
- UBS raised its palladium price forecasts for late 2026 and early 2027, citing a tighter physical market due to resilient automotive demand and contracting supply.
- Tanker attacks in the Strait of Hormuz have lifted oil prices and raised concerns over inflationary pressures, keeping traders cautious and providing some support to palladium prices.
Sources
- Palladium - Price - Chart - Historical Data - NewsTrading Economics · October 12, 2026
- UBS raises palladium price target on tighter supply outlookInvesting.com · September 21, 2026
- Palladium Slides to 1-Year LowTrading Economics · October 2, 2026
- Palladium at $1,269: a deficit metal priced for surplusThe Industry Spread · August 1, 2026
AI-generated from public news sources. Not financial advice.
