Palladium tumbles below $1000 an ounce once again

Palladium prices fell on Friday as the dollar rose against most major rivals, with the industrial metal relinquishing the $1000 barrier once more.

Recent US data showed personal spending, the Fed’s favorite inflation index, stabilized at a 2.8% growth rate in March, but remained above analysts’ expectations of 2.7%. 

Core personal spending, excluding food and energy, rose 2.7%, up from 2.5%. 

Personal income rose 0.5% last month, above 0.3% in February. 

Palladium was recently boosted by concerns about supply shortages from Russia as the US and the EU tighten their sanctions on Russian metal exports to weaken its war capabilities in Ukraine. 

Palladium

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

However, as EV car 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 rose 0.5% to 106.1 as of 16:22 GMT, with a session-high at 106.1, and a low at 105.4. 

On trading, palladium futures due in June tumbled 2.2% to $960.5 an ounce as of 16:22 GMT.