Palladium Steadies After 8-Month Low

Palladium hovered near $1,350 per ounce, steadying after an eight-month low as easing Middle East tensions boosted risk appetite across commodity markets. Brent crude futures fell below $80 a barrel after dropping nearly 5% in the previous session following the announcement of an interim US-Iran peace deal. Falling oil prices led investors to scale back expectations for further Fed tightening, with the probability of a December rate hike dropping to about 60% from roughly 70% a week earlier. Lower rate expectations weighed on Treasury yields and supported precious metals. Additional support came from short covering, while investors continued to monitor supply risks and the outlook for automotive demand. Market participants are awaiting a series of central bank meetings this week, including the Fed’s rate decision on Wednesday, the first under new Chair Kevin Warsh. Over the past month, palladium has fallen 3.84%, but remains 30.39% higher than a year ago.