Palladium surges over two percent

Palladium prices rallied over two percent in American trade even as the dollar index gained ground, following an array of data from the US, the world's largest economy, and ahead of speeches by Federal Open Market Committee members Lael Bernard and Jerome Powel. 

As of 02:54 GMT, palladium jumped 2.45% to $986.14 an ounce from the opening of $962.55, while the dollar index rose 0.13% to 93.13 from the opening of 93.01. 

Earlier US data showed unemployment claims fell more than expected last week, as producers prices grew 0.4% in line with expectations in September, as core prices accelerated to 0.4% beyond forecasts. 

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. 

The bank also expected more gains for palladium prices in the next 12 months to 2014 highs.