Palladium climbs but remains below $1,500

Palladium prices rose on Friday amid ongoing pressure from the stronger dollar, and uncertainty on the global economy.

Fed's Policies

The Federal Reserve announced a 0.25% rate hike to 5.25% this week as expected by market analysts, the highest level since 2007.

However the bank directly hinted at the end of the current cycle of policy tightening.

The Fed raised interest rates 7 times in 2022, during March, May, June, July, September, November, and December.

Fed Chair Jerome Powell asserted the bank will continue to fight inflation to bring it down to the 2% targets, while continuing to monitor economic data to gauge progress.

In the same context, the European Central Bank announced a 0.25% rate hike yesterday in an attempt to combat inflation in the euro zone. 

US Labor Data

Recent data showed US unemployment claims fell to 3.4% in April, from 3.5%, beating estimates of 3.6%.

US economy added 253 thousand new jobs in April, beating estimates of 181 thousand, and up from 165 thousand in March.

Chinese Demand

Markets remain hopeful for a rebound in Chinese economic recovery after lifting Covid 19 restrictions and opening up the economy once more.

China is the world's largest consumer of industrial metals and their prices are highly sensitive to Chinese developments.

Palladium is used extensively in the electronics and automotive industries to reduce exhaust fumes. 

Otherwise, the dollar index stabilized at 101.4 as of 15:47 GMT, with a session-high at 101.7, and a low at 101.1.

On trading, palladium futures due in June rose 1.6% to $1,464.5 an ounce as of 15:48 GMT.