Palladium falls, but remains near $2,800/ounce

Palladium prices fell on Tuesday, as the US dollar edged up against most of its rivals, but the industrial metal remains near its high levels.

Several global mining companies forecast a supply shortage of some main industrial metals, especially nickel, palladium and platinum.

Analysts also forecast strong demand for palladium from automakers that use the metal in manufacturing environmental-friendly car components.

Following expectations of the global economic recovery, most notably in the US and Chinese economies, metals such as copper and palladium will witness a strong demand and prices will be lifted this year.

The dollar index rose against a basket of currencies by 0.1% to 91.1 points as of 13:35 GMT, after it hit a high of 91.2 points and a low of 90.8 points.

Palladium June futures fell 1.4% to $2,775 an ounce as of 13:37 GMT, with a high of $2,824.5 and a low of $2,721.5.