Palladium prices fell on Tuesday as the dollar gained ground against most major rivals, while analysts expect demand on platinum and palladium to decline next year. 

A Reuters survey showed that analysts expect platinum and palladium prices to decline in 2024 as automotive production slows down.

Both metals are used in the car industry to reduce exhaust fumes, while platinum is additionally used in other industries and as a precious metal.

Average opinions expect platinum to fall to $1,023 an ounce in 2023, down from $1100 in earlier surveys.

Platinum is down 14% so far this year after a spike in April and May due to supply disruptions in South Africa.

A dip in automotive production, especially in the US, hurt platinum demand.

As for palladium, the Reuters survey expects the price to average $1,250 an ounce in 2024, down from $1,369 in previous surveys.

Palladium tumbled 40% so far this year, hitting five-week lows at $1,083.

Otherwise, the dollar index rose 0.4% as of 15:54 GMT to 105.6, with a session-high at 105.7, and a low at 105.2.

Palladium December futures fell 4.8% as of 15:55 GMT to $1,061.5 an ounce. 

Global oil prices fell on Tuesday to three-month lows, resuming losses amid renewed concerns about demand in China, the world's largest crude importer.

Prices are also pressured by the higher US dollar against a basket of major rivals, making commodities costlier to holders of other currencies. 

Global Oil Prices

US crude fell 2.35% to $78.97 a barrel, the lowest since August 25, while Brent declined 2.25% to $83.26 a barrel, the lowest since August 25. 

US crude and Brent both rose 0.1% on Monday, the second profit in three sessions.

Chinese Demand 

Recent official data showed Chinese imports contracted faster than expected in October, another sign of slower economic growth in the world's second largest fuel consumer. 

The data also showed growth in China's crude exports, but such growth might not be sustained as demand is expected to taper off.

Traders expect refinery operations to slow down in China during November and December, which could hurt crude demand. 

The Dollar

The dollar index rose 0.45% on Tuesday, on track for the second profit in a row away from a two-month low at 104.85 against a basket of major rivals. 

Such gains came after bullish remarks by Fed officials, which boosted the chance of another US interest rate hike next month.

US Stocks 

Later today, initial data on US crude inventories will be released by the American Petroleum Institute, expected to show another buildup. 

Dollar rose in European trade on Tuesday against a basket of major rivals, extending recovery from a two-month trough on bullish remarks from Fed officials.

Such remarks boosted the chance of another US interest rate hike in December, with investors now awaiting important remarks by Fed officials this week.

The Index

The dollar index rose 0.4% to 105.67, with a session-low at 105.26, after rising 0.2% yesterday, the first profit in four days away from a two-month trough at 104.85. 

Fed Remarks 

Minneapolis Fed President Neil Kashkari said the Fed might still have some work to do to control inflation.

US Rates

Following the remarks, odds for another US interest rate hike at the December meeting rose from 10% to 15%.

New Remarks

Now investors await Fed Chair Jerome Powell's speech tomorrow in addition to a variety of other speeches by Fed officials, which could offer clues on the likely path ahead.

Gold prices fell in European trade on Tuesday, sharpening losses for the second session and hitting a two-week trough as the dollar rebounds.

Such a rebound came after bullish remark by some Fed officials, which once again boosted the chance for another US interest rate hike in December.

Now investors await important speeches by Fed officials this week, including Fed Chair Jerome Powell tomorrow.

Gold Prices Today

Gold prices fell 0.5% to $1967 an ounce to the lowest since October 25, with a session-high at $1,978, after losing 0.75% on Monday, the first loss in three days, and the largest since October 2 as haven demand slows down. 

The Dollar

The dollar index rose 0.25% on Tuesday away from a two-month trough at 104.85 against a basket of major rivals.

Such rebound came after bullish remark by some Fed officials, which once again boosted the chance for another US interest rate hike in December.

Fed Remarks

Minneapolis Fed President Neil Kashkari said the Fed might still have some work to do to control inflation.

US Rates

Following the remarks, odds for another US interest rate hike at the December meeting rose from 10% to 15%. 

New Remarks 

Now investors await Fed Chair Jerome Powell's speech tomorrow in addition to a variety of other speeches by Fed officials, which could offer clues on the likely path ahead. 

The SPDR

Gold holdings at the SPDR Gold Trust rose 4.33 tonnes yesterday to a total of 867.57 tonnes, the highest since October 2.