Palladium prices have significantly risen from September of last year till the end of the year by approximately 50%. This sudden sharp rise is due to this metal’s supply shifting from abundance in early 2025 to fears of it running out and demand surpassing supply amidst the height of industrial demand for major metals.

Palladium’s Rebound Driven by Industrial Demand and U.S. Policy Moves

Despite palladium falling from its last peak since 2022 last December, it still got back to the $1,875 per metric ton level, rising as much as 14.7%. However, this noticeable rise in palladium is not only caused by industrial demand but also by the policies of the Trump administration.

For instance, Trump issued a presidential decree earlier this year to implement measures addressing national security risks associated with imports of processed critical minerals and their derivative products, including palladium, which is classified as a critical mineral.

Said decree did not directly impose any tariffs on these critical minerals, but it gave the president the right to do so in the future if negotiations with trade partners did not achieve the desired results by the US administration of free flow of included minerals into the United States.

Palladium Prices, industrial demand, & the AI boom!

Palladium is considered an essential mineral in many major technological industries, such as catalytic converters for conventional internal combustion vehicles, and is also vital in both electric and hybrid vehicle sectors. In addition, palladium is widely used in electronics, including smartphones and computers.

As for the AI industry, palladium is not directly involved in it. However, it is considered one of the major metals that go into the production of microelectronics and integrated circuits, which form the backbone of AI systems.

Similarly, data centers need palladium for the manufacture of micro-capacitors, connectors, and components related to semiconductor fabrication—all crucial to ensure the stability and efficiency of data centers’ servers working 24/7.

Palladium prices technical analysis January 2026

Palladium Price Movement - TradingViewPalladium Price Movement - TradingView

Figure 1: Palladium vs. US Dollar, D1, TradingView

As you can see on the chart above, palladium prices are trading upward, maintaining their bullish support level, and creating higher highs and higher lows, thus showcasing bullish momentum. Palladium’s next challenge in line appears to be the $1,975 line, the previous peak where palladium fell by 17% after reaching it. If it gets successful in breaching this level and closing above it on the daily chart, this could signal a potential period of sideways consolidation, with $1,975 acting as resistance and $1,488 serving as key support.