Introduction
The palladium futures experienced an explosive increase last trading week, reaching a 2-year high, marking a significant development in the commodity market. As of July 12, 2025, palladium is quoted at approximately €1,033.82 or $1,208.56 per ounce, showing a clear upward trend after a prolonged period of price decline since October 2022.
Market Dynamics and Volatility
This price surge is particularly relevant in light of the strong volatility of palladium and its close correlation with platinum, often dubbed “platinum’s little brother.” The industry frequently uses palladium as a substitute for platinum, which in turn influences the prices of both metals. Currently, the price of palladium is around $1,100 per ounce, whereas platinum is about 30 percent more expensive at over $1,330 per ounce.
The Role of the Automotive Industry
The main source of demand for palladium comes from the automotive industry, particularly for catalytic converters in gasoline vehicles – a factor that significantly influences the price. The recent strong price movement could indicate increased demand or supply shortages.
Platinum: A Comparison
In comparison, platinum is also showing bullish signals. The platinum price has recently broken through important resistance zones and is expected to continue rising in the medium term—due in part to a persistent supply deficit of several hundred thousand ounces annually until at least the end of 2025. This deficit also indirectly affects the market for related metals like palladium.
Conclusion
In summary, the current increase in the palladium price indicates a possible trend reversal following a phase of declining prices. This highlights the importance of supply-demand dynamics as well as industrial substitution possibilities between precious metals in the commodity market—critical factors for investors in precious metals and commodities overall.