Palladium hits record high on US-China trade deal hopes

Palladium prices soared in spot trading today, to extend its gains or th fourth straight day and hit a new all-time peek above $1,700, buoyed by hopes about a potential trade deal between the US and China to end their ongoing trade war, which has been negatively affecting the global manufacturing activity, while palladium also dro support from dollar's drop.

Palladium spot price rose by 0.4% to $1,706.56 an ounce (its all-time highest), from the opening of $1,699.00 with a session-low of $1,685.57.

Palladium closed higher by 1.1% yesterday, its third straight daily gain, as most industrial metals on optimism about the US-China trade talks.

President Trump described the current round of the trade talks as "a very, very good negotiation with China", and added that he and the Chinese Vice Premier Liu He will be speaking "a little bit later" at the White House.

The US and China have resumed the trade talks on Thursday in Washington, with the Chinese Vice Premier Liu He meeting with the US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.

The ongoing raging trade war between the world's two largest economies has caused a global economic slowdown worldwide which also led to weaken demand levels on industrial metals.

Palladium is used in the manufacturing of car components that reduce exhaust emissions, which led its prices to rise by 33% since the beginning of this year due to supply concerns despite a global slowdown in car sales. 

The dollar index fell today by 0.4% against a basket of major currencies, to continue its slide for the third day and hit a 3-week low of 98.24 points, which favor most metals and commodities denominated in dollars.

This sharp downturn in dollar levels comes after reveal of the Federal Reserve minutes and major US inflation data which increased market bets on a US rate cut by 25 bp for the third time this year at the October 29-30 meeting.