Palladium Tumbles Amid Macro Headwinds and Stronger Dollar
Palladium's price slid 2.6% in morning trading to reach $1,175.26 on Thursday, pressured by a combination of elevated U.S. Treasury yields, a stronger dollar, and cautious investor positioning ahead of Friday's September Nonfarm Payrolls report.
The decline reflects the continued macro headwinds that have weighed on the metal throughout recent weeks.
The prior session's August PCE inflation data offered a brief reprieve for precious metals, with headline PCE coming in at 3.4% year-over-year, below consensus expectations, and core PCE rising just 0.2% month-over-month.
However, that initial lift quickly faded as the dollar pushed toward levels last seen more than two decades ago, reinforcing the opportunity cost of holding zero-yield assets like palladium.