Palladium definition

Palladium is a rare precious metal used mainly in catalytic converters for petrol vehicles, where it helps reduce harmful exhaust emissions. It is quoted in US dollars per troy ounce and traded through spot, futures, and CFD markets.

Demand for palladium is dominated by the automotive industry, so its price is closely tied to vehicle production and emissions rules. Supply is concentrated in just a few mining regions, which can leave the market tight and prone to sharp price moves when output is disrupted.

Its cousin is platinum, the other key catalytic-converter metal. The two can substitute for each other in some applications, so a wide price gap between them can prompt manufacturers to switch, gradually pulling the two prices back toward each other.