Palladium price rides precious metals rally to two-year high

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Oct 09, 2025 10:51 AM NY Time

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Oct 09, 2025 10:51 AM NY Time

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(Mining Weekly, Thurs. Oct. 9th, 2025) -Palladium surged nearly 10% on Wednesday to a two-year high amid a relentless rally in precious metals that propelled both gold and silver prices to records.

The metal, used primarily in catalytic converters in car exhaust systems, traded as high as $1,482.65 per ounce, the highest since May 2023.

Over the past month, palladium has risen by more than 20%, riding the momentum of investment demand for safe-haven metals, in particular during a period of heightened political and economic uncertainty. In comparison, gold has gained 11% during that period, while silver rose by nearly 17%.

Palladium Update: Outlook 2021 | Cora Refining

Palladium prices are soaring due to the broad rally in precious metals, heightened investment demand for safe-haven assets amid economic uncertainty, and a technical breakout from a long-term resistance zone. The metal has hit a multi-month high, gaining significantly over the past few weeks and months as it benefits from investment in precious metals and a potential shift away from the dollar. 

Key Factors Driving the Price Increase
  • Precious Metals Rally: Palladium is benefiting from a broader upward trend in precious metals, including gold and silver.
  • Safe-Haven Demand: Investors are seeking safe-haven assets due to heightened global political and economic uncertainty.
  • Dollar Aversion: A prolonged shutdown of the US government and broader economic concerns have led global markets to seek alternatives to dollar-denominated assets.
  • Technical Breakout: The price has broken through a key resistance zone between $1,200 and $1,400, a level that previously capped gains, signaling a potential bull market for the metal.
  • Automotive Demand: While the long-term trend for automotive demand is a key driver, the recent price surge is more strongly linked to the investment-driven rally in precious metals. 
Recent Price Movements
  • Palladium futures rose to approximately $1,325 per ounce in early October, the highest since mid-July.
  • On October 8, 2025, the metal surged nearly 10% to a two-year high, reaching up to $1,482.65 per ounce, according to Mining.com.
  • Over the past four weeks, palladium gained over 20%, and over the last 12 months, it increased by 35.52%, notes Trading Economics. 
Context of Previous Trends
  • Palladium had a strong rally from 2016 to 2022, driven by tighter emissions standards and supply deficits.
  • Prices subsequently tumbled after a sharp drop in demand due to the post-pandemic economic slowdown and automakers shifting to cheaper alternatives.
  • The current rally is seen by some as the beginning of a new bull cycle, breaking a price ceiling that has held for the past two years. 

    Posted by:

  • Jack Dempsey, President
  • 401 Gold Consultants.com
  • jdemp2003@gmail.com

 

 

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