UBS Cuts Palladium Price Forecast to $1,100 per Ounce on Softening Sentiment

UBS has lowered its 12-month palladium price forecast to approximately $1,100 per ounce, reducing its December, March, and June projections by $100 to $200 per ounce. The bank cited weakening investor positioning, bearish options market sentiment, and deteriorating physical demand as primary drivers. Notably, Chinese palladium imports dropped from nearly 8.6 metric tons in April to 3.4 metric tons in September. However, UBS noted downside risks may be buffered by palladium's widening discount to platinum, which enhances substitution back into gasoline autocatalysts.