Palladium prices averaged USD 1,239 per troy ounce in September, 0.6% lower than August’s price and down 41.4% year on year. Meanwhile, on 29 September, palladium closed the day at USD 1,289 per troy ounce, up 5.2% month on month.
In September, the average price of palladium declined versus August due to decreased investment demand amid expectations that major central banks would keep rates higher for longer. In particular, the Federal Reserve revising its end-of-year interest rate forecast upwards prompted investors to move away from precious metals, which do not yield interest. Additionally, stronger Treasury yields increased the opportunity cost of holding palladium, while a stronger U.S. dollar made palladium more expensive for those holding other currencies. In contrast, upward pressure on prices came from more severe power disruptions in South Africa in September, which could have affected supply. Furthermore, robust car demand in major economies—palladium’s primary use is in cars’ catalytic converters—also boosted demand.
Palladium LME (prices in US$/toz, aop)
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