British News Agency

Palladium futures fell by around 10% to $1,790 per ounce. Platinum futures also followed the broader sell-off in precious metals, retreating from record levels and losing more than 6% to around $2,300 per ounce.

Investors also assessed geopolitical risks after U.S. President Donald Trump made remarks suggesting significant progress had been made in talks with Ukraine, even though negotiations are expected to continue for several more weeks.

Ukrainian President Volodymyr Zelenskyy reiterated cautious optimism, stating that most elements of the framework are ready and that security guarantees with the United States have been secured, despite some remaining hurdles.

Meanwhile, China’s Guangzhou Futures Exchange announced that it will adjust trading limits and minimum position sizes for palladium and platinum contracts starting December 29, a move expected to affect liquidity and trading dynamics in these metals.

Nevertheless, palladium continues to head toward an annual gain of around 100%—the largest since 2009—supported by strong industrial demand from the automotive sector, tight supply, and robust ETF inflows.

Platinum futures, despite losing more than 6% from record highs to around $2,300 per ounce amid the broader sell-off, are still on track for a 155% rise in 2025.

Support for platinum has come from a recovery in industrial demand, underpinned by the EU’s plan to ease the 2035 ban on internal combustion engines, strong Chinese demand, and the launch of GFE platinum futures, which has boosted market liquidity.

On the other hand, disruptions in South Africa—where the mines are located—have led to an annual deficit for the third consecutive year, while supply constraints persist as inventories have fallen to the equivalent of five months of global consumption, the lowest level since 2020.