Palladium prices are experiencing significant upward momentum, with recent reports indicating a breakout in the market. The December contract for palladium hit its limit up, suggesting a strong rally driven by short covering among speculators. Analysts note that the demand for palladium is being fueled by stricter environmental regulations and advancements in technology. Goldman Sachs highlighted that volatility has increased by 10 basis points in the front month, with forward prices tightening by 50 basis points across the calendar for 2025. Current prices are approaching one-year highs at $1,225, and a further increase of 7% could trigger a gamma squeeze. Additionally, the price of Sibanye Stillwater (SBSW) shares surged from $3 to $5, reflecting the broader market's bullish sentiment towards palladium, which has risen from $900 to $1,200 in just six weeks. The palladium-to-gold price ratio remains at historic lows, indicating potential for further gains.