Oil Prices Above $100 Spark Sell-Off in Platinum and Palladium

Platinum and palladium prices are under pressure due to rising oil costs and expectations of a Federal Reserve rate hike. The increase in oil prices above $100 has heightened concerns about inflation, production expenses, and vehicle sales, negatively impacting demand for precious metals. Higher Treasury yields and a stronger US dollar have also contributed to reduced buying interest in platinum (XPL) and palladium (XPD).

Rising energy costs have increased the risk of breakdowns for vehicles that rely on these precious metals, which could further exacerbate market pressure. In order for platinum and palladium prices to recover sustainably, lower oil prices and softer rate expectations are necessary.