Palladium has also seen a considerable price increase of 44% since the beginning of the year – just yesterday, the price jumped up again. However, it is still lagging behind the other three major precious metals, Commerzbank's commodity analyst Barbara Lambrecht notes.

WPIC expects a supply surplus only in 2028

"The main reason for this below-average performance is the weak demand in recent years: the slump in sales in the automotive industry – most notably for combustion engines – is having a particularly negative impact on Palladium, as a significantly larger share of demand comes from the automotive industry than in the case of Platinum."

"Against this backdrop, the WPIC predicted in May that the Palladium market would already show a supply surplus next year. However, demand prospects have now been revised slightly upward, partly due to the lower price trend for Palladium relative to Platinum, and the WPIC now expects a supply surplus only in 2028."

"Nevertheless, there are clear signs of an easing in the Palladium market, which should limit the catch-up potential for Palladium. We are also raising our forecast for the price of Palladium, but do not see any further upside potential for next year: we expect the price of Palladium to reach $1,350 per troy ounce by the end of 2026 (previously: $1,300)."