Palladium drops over 1% on rising dollar and US political tensions

Palladium prices fell on Thursday, as the US dollar rose against its peers, which weighs down on industrial metals in addition to political tensions in the US.

Thousands of Trump supporters yesterday stormed the US Capitol building to protest the session that declared Joe Biden the new President of the United States.

Investors are optimistic about the Democrats' control of both houses of Congress and the presidency, as they intend massive stimulus packages to bolster the economy, which would lift demand for industrial metals such as copper and palladium. 

The dollar index rose against a basket of major currencies by 0.3% to 89.8 points as of 14:32 GMT, after hitting a high of 89.9 points and a low of 89.3 points.

Palladium December futures fell 1.1% to $2,424.5 an ounce as of 14:33 GMT, with a high of $2,464.5 and a low of $2,408.5.