Palladium Drops from 8-Month High
Palladium futures fell toward $1,130 per ounce from the eight-month high of $1,172 from July 2th, as demand for safe-haven metals waned after the US signaled progress on several trade agreements, the dollar strengthened, and geopolitical tensions in the Middle East eased.
The EU signaled that it grew closer to striking a trade agreement with the US, while China signaled it may be less restrictive on exports of rare earths.
On top of that, the global shift towards electric vehicles continues to weigh on the use of palladium in catalytic converters, with global sales of electric vehicles increasing by 28% in the year to May and China alone registering a 33% jump in May.
On the supply side, milder than normal production interruptions in Russia and South Africa helped ease pressure on stocks.
Even so, falls were limited by continued outflows from ETFs, persistent scrap shortages due to high recycling costs and strong Chinese imports for industrial uses beyond the automotive sector.