Palladium Pulls Back from 3-Year High

Palladium prices fell to $1,850 per ounce from the three-year high of $2,200 on January 26th, tracking the aggressive decline for platinum group metals as a rebound in the dollar drove markets to reconsider the speculative positions that triggered an unprecedented surge in precious metals this month. The dollar rebounded as bullion and platinum metals gave back their gains amid increasing concerns that their rallies are not backed by economic fundamentals. The support for the currency was magnified by the nomination of Kevin Warsh as the next Federal Reserve Chairman due to hawkish stances during his Governorship in the global financial crisis. On the supply side, short-term concerns were heightened by a pending review of the Canada–United States–Mexico trade deal and ongoing 50% tariff threats, given Canada’s role as a key global supplier of palladium.