Palladium rises from four-month low as dollar slides

Palladium prices tilted higher in American trade away from October 25 lows as the dollar index fell off January 23 lows, amid a lack of data from the US, the world's largest economy. 

As of 02:39 GMT, palladium rose 0.07% to $985.83 an ounce from the opening of $985.15, while the dollar index dropped 0.50% to 89.75 from the opening of 90.21. 

Earlier today, Federal Reserve Bank of Cleveland President Loretta Mester spoke about the economic outlook and monetary policy at the Dayton Area Chamber of Commerce Government Affairs Breakfast, while the NFIB Small Business Index rose to 106.9 from 104.9 in December, beating expectations of 106.2. 

Markets await US inflation data later this week, specifically consumer and producer prices in addition to retail sales, industrial, housing, and consumer confidence data. 

Palladium, one of the rarest metals on earth - 30 times rarer than gold- continues to move away from record highs as dollar rebounds strongly from three-year lows, while noting that Russia and South Africa provide over 75% of global palladium supplies. 

Otherwise, 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, while expecting upbeat gains throughout the ongoing 12 months, which was reflected in palladium's surge to record highs.