Palladium declines as dollar gains ground before Fed's minutes

Palladium prices fell in American trade off recent record highs, while the dollar index gained ground after a slew of US housing and labor data, and ahead of the Federal Reserve's meeting minutes. 

As of 02:53 GMT, palladium shed 0.52% to $1,179.77 an ounce away from record highs, while the dollar index rose 0.07% to 96.85 against a basket of major rivals. 

Earlier US data showed pending home sales fell 2.6% m/m in October, compared to a 0.7% increase in September, while analysts estimated a 0.8% increase. 

On a yearly basis, sales slid 4.6%, compared to a 3.3% drop in October, while analysts expected a 2.8% decline. 

US personal income rose 0.5% in October, beating estimates of 0.4% and improving above September's 0.2% increase. 

Personal spending rose 0.6% in October, beating forecasts of 0.4%, and improving upon September's 0.2% increase, which was revised from 0.4%. 

Unemployment claims for the week ending November 24 rose by 10 thousand to a total of 234 thousand, while continuing claims for the week ending November 17 rose by 50 thousand to 1.710 million. 

In a speech yesterday, Federal Reserve Chair Jerome Powell noted how interest rates are still below neutral levels, while adding that gradual rate hikes represent the best balance between the risks of accelerating or slowing down the pace of policy tightening. 

The remarks were priced in as indication the cycle of extensive rate hikes are nearing its end, with the Fed heading for moderation with policy tightening.