Palladium prices rose on Friday even as the dollar edged up against major rivals, with the metal approaching $1500 once more. 

Data

Earlier data showed US consumer spending growth slowed down to 0.3% last month from 0.5% in the previous reading.

On a yearly basis, consumer spending rose 5%, slowing down from 5.3% in January, and hitting 1-1/5 year lows. 

White House and Banking Sector

US President Joe Biden asked federal regulators to take measures to protect the US banking sector following the collapse of the Silicon Valley Bank and Signature Bank. 

In a press release, the White House said that Biden's suggestions go in line with his recent efforts to bolster regulations of major banks to avoid a repetition of such situations. 

Demand

Palladium and other industrial metals were bolstered by stronger Chinese demand, as Beijing remains the world's largest consumer of industrial metals. 

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

Otherwise, the dollar index rose 0.2% as of 14:44 GMT to 102.3, with a session-high at 102.5, and a low at 102.05.

Palladium futures due in June rose 0.8% to $1,476.5 an ounce, with a session-high at $1,503.

Oil prices rose in European trade for the second session, hitting two-week highs and on track for the second weekly profit in a row on concerns about global supply shortages.

The concerns grew after the sharp decrease in US crude stocks last week, while US output tumbled as well, with Kurdish supplies halted through Turkish ports.

Prices are also boosted by signs of improving demand in China after reopening the economy.

Global Prices

US crude rose 0.9% to $74.96 a barrel, the highest since March 13, while Brent added 0.75% to $79.04 a barrel, the highest since March 14.

US crude rallied 2.1% on Thursday while Brent climbed 1.3% as the dollar lost ground. 

Oil prices are 7% higher so far this week on track for the second weekly profit in a row away from recent 15-month lows.

US Stocks

The Energy Information Administration announced a drawdown of 7.5 million barrels in the week ending March 24, while analysts expected a buildup of 1.8 million barrels.

It's the largest inventory drawdown in 2023 in a sign of improving US demand on fuel.

US Output

The EIA also announced a drop in US crude production by 100 thousand bpd last week to a total of 12.2 million barrels.

Kurdish Supplies

Turkey stopped the Kurdistan Region from pumping crude through its oil pipeline after a court order than required the approval of the Iraqi government to ship the oil.

Such legal conflicts in Iraq between the federal government and Kurdistan led to a cut of 450 thousand bpd in crude exports.

Barkley's expects an increase of $3 a barrel in crude stocks from its $92 projections for Brent in 2023 with a long-term disruption in Kurdish exports.

Chinese Demand

Recent government data showed official outlook for Chinese crude imports are expected to grow 6.2% this year to 540 million tones. 

Gold prices declined in European trade as dollar rebounded from one-week lows against a basket of major rivals, ahead of US consumer spending data, important for gauging inflationary pressures. 

The precious metal is on track for another quarterly profit on strong haven demand amid mounting concerns about the banking sector in the US and Switzerland, and on speculation that global central banks will wrap up the current cycle of policy tightening soon.

Gold Prices Today

Gold prices fell 0.4% to $1,973 an ounce, after rising 0.8% yesterday, the second profit in three days as the dollar dipped. 

The Greenback

The dollar index rose 0.3% on Friday off one-week lows at 102.05, against a basket of major rivals.

The gains came as investors focus once more on data with banking concerns subsiding as US authorities intervene to contain the fallout of the collapse of several banks. 

Additionally, three Fed members opened the door for more rate hikes in the future to contain inflation.

Fed Rates

Following such remarks, pricing for no change in interest  rates at the Fed's May meeting fell from 57% to 45%, while pricing for a 0.25% rate hike rose to 55%.

Consumer Spending Data

Investors await important US consumer spending data later today, crucial for gauging inflationary pressures and the path forward for monetary policies. 

Quarterly Profits

Gold prices are up a strong 8.5% so far in the first quarter of the year, the second such profit in a row. 

Gold prices hit one-year highs at $2,009 an ounce on March 20 on haven demand amid concerns about the banking sectors. 

Such concerns exploded after the Silicon Valley Bank's collapse alongside two other smaller banks in the US, followed by credit troubles for the Swiss Credit Suisse Bank.

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday at 929.47 tones, the highest since October 2022.

Agricultural commodities fell at the Chicago Exchange for the first time in five sessions but losses were contained due to concerns about Russian supplies, with the the global grains trading company Cargill saying it won't deal with Russian grains at its own export station. 

Cargill said on Wednesday it'll take another step to back off the Russian market by quitting operations with the largest wheat supplier at its own export station starting July. 

Russian exports could be hampered as well if Moscow recommended a temporary cut in grain exports as some Russian media alluded. 

However, Reuters sources said Russia doesn't plan to stop wheat exports but will ask exporters to raise prices for the farmers to cover production costs. 

Conversely, Ukrainian official data showed Ukrainian grain exports rose to 5.1 million tones in March compared to 1.4 million tones in March 2022. 

And some analysts said Brazil is ready to supply nearly half the soybeans that Argentina will import after undergoing the worst drought in 100 years, which destroyed its fields and cut 2023 output by half. 

Corn

Corn futures due in May fell 0.1% to $6.49 a bushel. 

Soybeans 

Soybean futures due in May fell 0.2% to $14.74 a bushel. 

Wheat

Wheat futures due in May fell 1.9% to $6.92 a bushel.