Palladium extends gains above $1,600 an ounce

Palladium prices rose on Friday as the dollar stabilized against most major rivals while markets assess latest economic data. 

Markets continue to assess latest inflation data which bolstered the case for further policy tightening by the Federal Reserve, estimated at 0.25% in May.

New York Fed President John Williams said inflation remains an issue in the US, and vowed the Fed will move to suppress it.

Atlanta Fed President Raphael Bostic said the Federal Reserve still needs to increase interest rates by 25 basis points in May.

He said after such a decision, the Fed might cease any such moves and hold rates for a long term as it assess the policy's impact on the economy.

Chinese Demand

Analysts expected growing demand on commodities and industrial metals in China following data that showed the GDP grew by faster than expected in the first quarter of the year. 

Palladium is used in electronics and automotive components to reduce toxic exhaust fumes. 

Otherwise, the dollar index stabilized at 101.8 as of 15:18 GMT, with a session-high at 102.1, and a low at 101.6.

Palladium June futures rose 1.5% to $1,611.5 an ounce as of 15:24 GMT.