Palladium declines over 2% to below $1,400
Palladium prices declined on Friday as the dollar muscled up against most major rivals while markets assess the Fed's policies.
Powell
The Federal Reserve raised interest rates by 25 basis points to 5%, the highest since mid 2007.
The Fed removed the phrasing about the need for continuous hikes in interest rates, preferring to use the phrase of "some more tightening" could be appropriate.
The Fed also maintained neutral interest rates outlook at 5.25% for 2023, paving the way for one more rate hike this year.
Fed Chair Jerome Powell said the Fed will do whats "necessary" to bring inflation back to 2%, with another rate hike if needed.
Powell said US growth was impacted by higher interest rates, while the labor sector remains strong, and unemployment low.
He asserted the Fed is working with the US Treasury Department to scan the banking system and guarantee its strength and protect deposits.
And finally he said that it's unlikely for the Fed to cut interest rates this year, and a rate increase is possible.
The Dollar
The dollar index rose 0.6% as of 15:10 GMT to 103.2, with a session-high at 103.3, and a low at 102.5.
Dollar's strength continues to pressure commodities and industrial metals, including palladium, used widely in the car and electronics industries.
On trading, palladium June futures fell 2.5% to $1,397.5 an ounce as of 15:11 GMT.
Dollar edges up as Deutsche Bank stumbles
Dollar rose in European trade on Friday against a basket of major rivals away from seven-week lows, benefiting from the troubles of the Deutsche Bank, while investors shun risks for the time being.
Despite current gains, the dollar is on track for the second weekly loss in a row amid expectations the Fed's current policy tightening path is nearing an end.
The Index
The dollar index rose 0.75% to 103.35, with a session-low at 102.50, after rising 0.1% yesterday, the first profit in six days away from seven-week lows at 101.92.
Dollar was boosted on haven demand after US Treasury Secretary Janet Yellen renewed concerns about the US banking system.
Yellen asserted the government is ready to enact m ore measures to protect bank deposits if needed.
Deutsche Bank
The cost of insuring Detusche Bank's debts surged to record highs, sending the stock down 15% to five-month lows.
US Treasury Secretary Janet Yellen asserted the government is ready to enact m ore measures to protect bank deposits if needed.
Such developments spooked the markets once more about the banking sector after a short lull and UBS's acquisition of Credit Suisse.
Weekly Trades
The index is down 0.5% so far this week on track for the second weekly loss in a row, as the Fed's policy tightening winds to a close end.
The Fed
The Federal Reserve raised interest rates by 25 basis points to 5%, the highest since mid 2007.
The Fed removed the phrasing about the need for continuous hikes in interest rates, preferring to use the phrase of "some more tightening" could be appropriate.
The Fed also maintained neutral interest rates outlook at 5.25% for 2023, paving the way for one more rate hike this year.
Powell
Fed Chair Jerome Powell said the Fed will do whats "necessary" to bring inflation back to 2%, with another rate hike if needed.
Powell said US growth was impacted by higher interest rates, while the labor sector remains strong, and unemployment low.
He asserted the Fed is working with the US Treasury Department to scan the banking system and guarantee its strength and protect deposits.
And finally he said that it's unlikely for the Fed to cut interest rates this year, and a rate increase is possible.
US Rates
Pricing for a 0.25% rate hike by the Fed at the May meeting stands at 23%, down from 70%.
Silver extends gains to seven-week high on haven demand
Silver prices rose in European trade for the third straight session to seven-week highs after surpassing $23 an ounce once more on strong demand on safe havens as Deutsche Bank's troubles spook the markets.
The white metal is on track for the second weekly profit in row on prospects of the end of the US policy tightening cycle.
Prices Today
Silver prices rose 1.1% to $23.32 an ounce, the highest since February 2, with a session-low at $22.95, after rising 0.5% yesterday alongside most precious metals.
Global Banking Sector
The cost of insuring Detusche Bank's debts surged to record highs, sending the stock down 15% to five-month lows.
US Treasury Secretary Janet Yellen asserted the government is ready to enact m ore measures to protect bank deposits if needed.
Such developments spooked the markets once more about the banking sector after a short lull and UBS's acquisition of Credit Suisse.
Weekly Trades
Silver is up 3.25% so far this week, on track for the second weekly profit in a row amid high demand on safe havens.
The Fed
The Federal Reserve raised interest rates by 25 basis points to 5%, the highest since mid 2007.
The Fed removed the phrasing about the need for continuous hikes in interest rates, preferring to use the phrase of "some more tightening" could be appropriate.
The Fed also maintained neutral interest rates outlook at 5.25% for 2023, paving the way for one more rate hike this year.
US Rates
Pricing for a 0.25% rate hike by the Fed at the May meeting stands at 23%, down from 70%.