Palladium prices fell on Friday as dollar lost ground against major rivals amid concerns about demand on industrial metals next year.

A Caixin survey in China showed factory activities grew unexpectedly in November, however the main official manufacturing PMI declined.

Dollar lost ground today, providing some support to most industrial metals, except palladium, with the greenback suffering from weaker US inflation data and a speech later today by Fed Chair Jerome Powell. 

Weak inflation data in both the euro zone and the US enforced the prospects of no more policy tightening this year, as both regions prepare for an interest rate cut in 2024. 

Otherwise, the dollar index fell 0.3% as of 17:47 GMT to 103.2, with a session-high at 103.7, and a low at 103.2.

Palladium March futures fell 0.5% to $1,015 an ounce as of 17:48 GMT, while December futures fell 2%. 

Gold prices rose in European trade on Friday, resuming gains and approaching 6-1/5 month highs again, while heading for the third weekly profit in a row as the dollar loses ground.

The decline comes ahead of two successive speeches by Fed Chair Jerome Powell later today, which will provide clues on the likely path ahead for US monetary policies.

Gold Prices Today 

Gold prices rose 0.35% to $2,043 an ounce, with a session-low at $2,036, after losing 0.4% yesterday, the first loss in six days on profit-taking away from a 6-1/5 month high at $2,052. 

Gold rose 2.6% in November, the second monthly profit in a row on active demand on non-yielding assets as investors expect the Federal Reserve to wrap up the current cycle of policy tightening.

Weekly Trades 

Gold prices are up over 2% so far this week on track for the third weekly profit in a row. 

The Dollar

The dollar index fell 0.25% on Thursday, resuming losses and rebounding from three-month lows against a basket of major rivals.

The decline comes following a string of bearish remarks by Fed officials, which eliminated the odds of another interest rate hike this year and boosted the chances of an interest rate cut next March. 

Fed Remarks

New York Fed President John Williams said on Thursday that interest rates have peaked out and that monetary policies have become sufficiently tight.

San Francisco Fed President Mary Dale said that interest rates are in a "very good spot" to control inflation right now.

US Rates

Odds for a surprise US interest rate hike at the Fed December meeting stand at just 3%.

Odds for an interest rate cut at the Federal Reserve March 2024 meeting stand at 42.5%. 

Powell

Now investors await crucial speeches by Fed Chair Jerome Powell later today to gauge the likely path ahead for policies and the official opinion on inflation right now.

The SPDR

Gold holdings at the SPDR Gold Trust fell 2.02 tonnes yesterday, the third decline in a row to a total of 876.51 tonnes, the lowest since November 13. 

US stock indices were mixed on Thursday while still heading for solid monthly profits, which could be the best this year.

Recent data showed core personal spending, the favorite inflation gauge by the Federal Reserve, rose 0.2% m/m and 3.5% y/y as expected last month.

Earlier data also showed unemployment claims rose to 218 thousand last week from 211 thousand in the previous reading. 

Most investors now expect the Federal Reserve to wrap up the current cycle of policy tightening and prepare for the first interest rate cut in the first half of 2024.

On trading, Dow Jones rose 0.7% as of 17:55 GMT, while S&P 500 fell 0.1%, or 6 points to 4544, as NASDAQ shed 0.6%, or 92 points to 14,166. 

Copper prices pushed higher on Thursday on track for the first monthly profit in four months, even as dollar gains ground as well.

Copper tree-month futures at the London Metals Exchange rose 0.7% to $8477 a tonne, while rising 4.6% on a monthly basis. 

Copper January futures rose 0.2% at the Shanghai Exchange to $9586 a tonne, while rising 1.5% on a monthly basis.

Dollar has gained some ground as well but remains near three-month lows while heading for the largest monthly loss in a year, underpinning dollar-denominated copper futures.

Recent Chinese data showed the manufacturing sector contracting for another month, while the services sector slowed down unexpectedly as well. 

Panama's president said the Cobre Panama copper mine will be closed for the time being, which is alone responsible for 1% of global production, after the Supreme Court declared the contract with the First Quantum company unconstitutional.

In Peru, workers continue to strike in copper mines in protest of low wages.

Aluminium rose 0.2% at the London Exchange to $2217 a tonne, while zinc stabilized at $2501, as nickel declined 1.4% to $16890, while lead shed 0.2% to $2143, and finally, tin remained flat $23,500. 

Otherwise, the dollar index rose 0.7% as of 17:38 GMT to 103.4, with a session-high at 103.5, and a low at 102.7. 

Copper futures due in March rose 0.5% as of 17:28 GMT to $3.84 a pound.