UBS Raises Palladium Price Forecasts by Up to $200 on Supply Constraints

UBS has lifted its palladium price forecasts for late 2026 and early 2027 as tighter physical supplies and resilient automotive demand limit near-term downside. The Swiss bank increased its December 2026 and March 2027 targets by $200 per ounce each and raised its June 2027 forecast by $100 per ounce, with palladium recently trading near $1,327 per ounce. The revision stems from contracting primary mine production in Russia and South Africa, alongside sustained hybrid vehicle adoption and palladium's discount to platinum supporting catalytic converter demand.