Palladium prices advanced slightly in American trade as the dollar index settled lower, following earlier data from the US, the world's largest economy.
As of 02:42 GMT, palladium prices rose 0.04% to $890.04 an ounce from the opening of $889.91, while the dollar index shed 0.02% to 97.54 from the opening of 97.56.
Palladium is gaining momentum after recent tumbles on profit-taking after marking the highest since September 2014 earlier this month.
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