Why is palladium going down?

What's been moving palladium lately

As of October 22, 2026

Palladium has been falling. It settled at $1,084.70 an ounce in New York futures trading on October 21, its lowest in more than a year: about 17% lower than a month earlier and half its 2026 high settlement of $2,170 on January 26. Its record, near $3,000, was set in March 2022.

Palladium rose with every other precious metal in January, but its problems are its own. Most of it goes into catalytic converters for gasoline cars, and that use is shrinking as electric cars spread, car output weakens, and automakers switch to platinum. In May, Johnson Matthey forecast that the market would move to a small surplus in 2026 after years of shortfalls, even with Russian mine output at its lowest in at least 20 years.

A U.S. trade case that could have put triple-digit duties on Russian palladium ended on May 29, when the U.S. International Trade Commission found that the imports weren't harming U.S. producers.

Since the Federal Reserve raised rates on September 16, the same pressure that hit the other metals has added to the selling. Trading Economics cites fund outflows, higher borrowing costs, and fuel prices weighing on car demand.

What makes palladium go down

• Electric cars. Fully electric cars need no catalytic converter, so long-term demand is expected to shrink as they spread.
• Swapping to platinum. When palladium costs more than platinum, automakers switch to platinum where they can.
• More recycling. Scrapped converters are a growing source of palladium, adding supply.
• Weak car sales. A slowdown in car sales, especially in China, cuts demand directly.
• Investors selling. Palladium's market is small, so selling by funds and traders moves the price sharply.

The same forces work in reverse: see why palladium goes up.

What it means if you're selling

We buy metal; we don't forecast prices, and nothing here is investment advice. What we can tell you is how the price reaches your payout. We pay 95% of the palladium value for palladium bullion and coins. Coins and bullion are priced at the Kitco bid when we verify your package, so a move in the price before then moves your payout with it. Our bids page shows today's numbers live.

Sources for the recent moves

• Federal Reserve statement, September 16, 2026.
• Johnson Matthey, PGM market report, May 14, 2026.
• U.S. International Trade Administration, final antidumping determination, unwrought palladium from Russia, April 28, 2026.
• Law360, Russian palladium dodges duties after ITC finds no harm, May 29, 2026.
• Trading Economics, palladium, October 2026.

Prices above are New York futures settlement prices; the live price at the top of this page is the Kitco bid.

Metal prices: Why is gold going up? · Why is gold going down? · Why is silver going up? · Why is silver going down? · Why is platinum going up? · Why is platinum going down? · Why is palladium going up? · Gold price history · Silver price history · Gold-to-silver ratio · What is the spot price? · All guides