Palladium breaks through $900 at the open

Palladium prices rose nearly one percent as the dollar index edged lower, amid a lack of data from the world's largest economy, and ahead of the Federal Open Market Committee's meeting today and tomorrow in Washington. 

As of 02:54 GMT, palladium rose 1.73% to $900.43 an ounce from the opening of $891.17, while the dollar index inched down 0.10% to 97.18 from the opening of 97.28. 

Palladium's rise for the fourth session in a row to the highest since September 2014 came after after Standard Chartered recently projected a supply deficit of 563 thousand ounces in the palladium market this year, compared to a deficit of 459 thousand in 2016. 

The bank also expected more gains for palladium prices in the next 12 months to 2014 highs.. while later this week, markets await inflation data for May, expected to influence Fed policymaker's positions in the ongoing June meeting. 

The Fed is expected to tighten its policy and raise interest rates by 25 basis points to between 1.00% and 1.25%, while policymakers are expected to unveil their three year forecasts for inflation, unemployment, growth, and interest rates for the next three years.