Palladium Sinks to 5-Week Low, Driven by Hot U.S. Inflation Data

Palladium futures dropped below $1,450 per ounce to reach a five-week low. A strengthening U.S. dollar and rising Treasury yields pressured the non-yielding metal.

Strong April Producer Price Index (PPI) and Consumer Price Index (CPI) data fueled the decline. These figures suggest the Federal Reserve will maintain high interest rates to combat persistent inflation.

A Johnson Matthey report forecasts a small palladium supply surplus for 2026. This follows an expected market deficit in 2025.