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Palladium also rose to 1,500 dollars per ounce—its highest level since November 12—supported by optimism regarding demand and supply constraints.

The Fed implemented a quarter-point rate cut in line with expectations and signaled a less hawkish policy stance going forward. Fed Chair Jerome Powell stated that despite markets expecting two rate cuts next year, the Fed currently projects only one, adding that further rate hikes are unlikely and reaffirming confidence in the momentum of the U.S. economy.

Platinum traded near its highest level in more than a decade, supported by optimism over a potential recovery in Chinese demand following the launch of a physically delivered platinum futures contract on the Guangzhou Futures Exchange.

Looking ahead, the World Platinum Investment Council forecasts a deficit of 69,200 ounces in 2025—marking a third consecutive year of shortage—while expecting the market to reach overall balance in 2026 with a modest surplus of around 20,000 ounces.

Palladium had also gained previously after the introduction of palladium futures in China. These contracts officially began trading on November 27 on the Guangzhou Futures Exchange, offering market participants new hedging tools and boosting expectations of stronger demand in China.

Since the beginning of the year, palladium has gained nearly 40 percent, slightly trailing other major precious metals such as gold, silver and platinum.

Short-term prices remain sensitive to the outcome of the U.S. Department of Commerce’s Section 232 investigation into critical minerals, as well as an anti-dumping petition filed by miner Sibanye and the United Steelworkers union.

Investors are awaiting decisions on potential import tariffs. Looking forward, the market expects a moderate supply deficit to persist until 2026.