Bullish potential for Palladium

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Palladium is supported by strong demand from the automotive sector due to stricter emission regulations globally, particularly in Europe, China, and North America. The metal is essential for catalytic converters in gasoline-powered vehicles, and as regulations tighten, demand is expected to remain robust. On the supply side, palladium mining is heavily reliant on South Africa and Russia, both facing challenges such as labor strikes, power shortages, and geopolitical tensions, which could disrupt production. Additionally, recycling rates for palladium are not keeping pace with rising demand, resulting in a supply shortfall. Growing interest from investors, both institutional and retail, as well as its expanding use in industries like electronics, hydrogen production, and fuel cells, adds to the bullish outlook. Overall, sustained demand and supply constraints could drive palladium prices higher.



Palladium prices have fluctuated significantly over time, rising from $150-$300 per ounce due to automotive demand, dipping to $160 during the financial crisis, and later peaking above $2,500 per ounce from 2019-2021 driven by emissions regulations and supply issues. Prices corrected in 2022 but remained high due to ongoing demand.

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