The palladium futures market has recently experienced an explosive rise to a two-year high, indicating a strong market trend. In the past trading week, the price increased by over 12%, reaching approximately $1,289 per ounce, the highest level since August 2023. Current prices are around $1,219 (approximately €1,043) per ounce, reflecting a weekly gain of over 6%.
Causes of the Price Increase
This significant price jump has primarily been triggered by geopolitical tensions and international trade conflicts: The announcement of high U.S. tariffs on various imports and the tense situation between the U.S. and Russia heavily influence palladium supply chains. Since Russia and South Africa together control about 80% of global palladium production, supply fluctuations due to political escalations are particularly relevant for the market.
Palladium as a Safe Haven
Palladium is also considered a safe haven during times of geopolitical uncertainty, which further drives demand. Historically, palladium has been very volatile; after an all-time high of nearly $3,000 in May 2021, the price fell significantly but is currently much higher than a few months ago (around $1,100 at the end of June 2025).
For investors in the commodities market, this rise presents opportunities, but also risks due to strong dependence on a few producing countries and political factors.
Key Points Summary
| Factor | Details |
|---|---|
| Current Price | Approx. $1,219/ounce (July 2025) |
| Price Increase Last Week | +12.38%, weekly high at approximately $1,289 |
| Causes | Geopolitical tensions & U.S. trade tariffs |
| Main Producers | Russia & South Africa (~80% market share) |
| Historical High | Approx. $3,000/ounce in May 2021 |
| Volatility | Very high; significant fluctuations in short time |
These developments make palladium a particularly interesting commodity for investors focused on political risk factors and supply shortages.