Palladium futures soared past $970 per ounce, reaching their highest level since February 21st, driven by a weaker U.S. dollar, a historic debt restructuring in Germany, and the prospect of additional stimulus from China. The dollar fell to a four-month low as concerns mounted over U.S. President Donald Trump’s aggressive tariff policies, heightening fears of a potential trade war that could tip the U.S. economy into recession.
Palladium hits one-month high
In Germany, Chancellor-elect Friedrich Merz secured an agreement with the Social Democrats (SPD) and the Greens to increase borrowing and public spending. The deal will unlock a €500 billion infrastructure fund and ease existing debt restrictions, signaling a significant policy shift aimed at bolstering economic growth.
China fiscal stimulus may influence the market
Meanwhile, in China, the government announced a fresh wave of fiscal stimulus during the National People's Congress (NPC) in early March, reinforcing its commitment to propping up domestic consumption and ensuring it meets its 5% growth target for the year. These global economic developments have fueled investor demand for palladium, a critical metal used in the automotive industry, as markets anticipate stronger industrial activity and increased demand for commodities.
