Palladium Continues Its Strong Performance and Outperforms Most Assets Since the Start of the Year
Author: Samir Al Khoury
Date: January 7, 2026
Current Market Overview
Palladium prices have shown a robust upward trend, currently trading at $1,853, marking the highest level since December 29, 2025. Since the beginning of the year, palladium has appreciated approximately 8%, outperforming various assets including Bitcoin, global equity indices, and gold. However, it has underperformed platinum, which has seen a rise of around 13%.
Key Factors Supporting Palladium Prices
Several factors are contributing to the strong performance of palladium:
- Interest Rate Expectations: Anticipation of U.S. interest rate cuts is bolstering the appeal of non-yielding assets like precious metals. Market forecasts suggest two rate cuts by the Federal Reserve this year.
- Industrial Demand: There is a strong demand for palladium, particularly from the automotive sector, driven by stricter emission standards in various regions.
- Supply Constraints: The demand for palladium is currently outpacing supply, leading to upward price pressure. Sanctions on Russia, the largest producer of palladium, have further tightened global supply.
Technical Analysis
From a technical standpoint, indicators suggest that the bullish trend in palladium prices is likely to continue. The alignment of the 20-day, 50-day, and 200-day moving averages shows a positive structure, with the 20-day average positioned above the 50-day and the 50-day above the 200-day. The Relative Strength Index (RSI) is currently at 56, indicating strong momentum, while a bullish MACD crossover supports the expectation of continued positive momentum.
Price Targets
The next significant price target for palladium is set at $1,983, which was the level recorded on December 29, 2025.