Palladium prices fell on Wednesday even as pressures mount on the dollar while risk appetite weakens in the market ahead of the release of Fed minutes.

So far this year, palladium fell 11.52%, with a 52-week high at $1647, and a 52-week low at $854.

Palladium is sensitive to geopolitical conditions and tensions in major palladium producing countries, with speculation also impacting prices.

A recent surge in EV cars adoption is hurting palladium as demand for its usage in traditional converter catalysts tumbles.

Palladium is a plentiful mineral in earth, with a 0.015% percentage in the earth’s crust.

Canada, Russia, the US, and South Africa are the major palladium producers worldwide, and it’s usually produced as a byproduct while refining other metals such as nickel and copper.

Palladium is used in electronics and dentistry equipment and as a platinum alternative in jewelry.

In the nineties and early 2000s, limited supplies and strong demand boosted prices considerably, with supplies hindered due to lack of internal investment and appropriate infrastructure in Russia and South Africa.

Across the last decade, spot palladium prices wavered between $500 and $1000 an ounce, with the white metal surpassing gold in 2021 when trading above $2000.

Prices hit a peak of $3440 in March 2022 due to the Russian-Ukrainian war, which hurt supplies.

However, palladium lost most of the gains since then and fell below $1500 in 2023 as EV car adoption increased.

Otherwise, the dollar index fell 0.1% to 104.02 as of 16:51 GMT, with a session-high at 104.2, and a low at 103.9.

Palladium June futures fell 4.8% as of 16:52 GMT to $941.5 an ounce.