UBS Lowers Palladium Price Forecast to $1,100 as Investor Positioning Weakens - Yahoo Finance

AI desk brief

UBS cut its 12-month palladium forecast to about $1,100/oz, trimming its December, March and June targets by $100-$200/oz as investor positioning weakens and options-market sentiment turns more bearish. The bank flagged lower Chinese imports as another headwind, with China’s palladium purchases falling from nearly 8.6t in April to 3.4t in September, a drop of about 60%.

UBS also noted a wider palladium discount to platinum could support some substitution demand in gasoline autocatalysts, partially offsetting the softer financial and physical backdrop. The move leaves the near-term tone for palladium cautious despite some potential automotive support from the relative price spread.