Palladium falls 3% as investors assess data

Palladium prices fell on Friday as the dollar gained ground against most major rivals as investors assess latest data.

US economy grew 2.9% in the fourth quarter of 2022, beating estimates of 2.6%, while up from 3.2% in the third quarter.

US durable goods orders rose 5.6% in November, beating estimates of 2.4%, and improving from October's 2.1% decline.

US unemployment claims tumbled to 181 thousand in the week ending January 21, the slowest since last April, and below estimates of 203 thousand, while also down from 192 thousand in the previous reading.

US consumer spending, an important index for inflation, rose 0.3% last month. 

Such data indicate the strength and vitality of the economy, which is reflected in recent statements by the IMF expecting the US recession to avoid recession this year.

The dollar index rose 0.1% to 101.8, with a session-high at 102.1, and a low at  101.6. 

Palladium futures due in March as of 15:11 GMT fell 2.7% to $1,620 an ounce. 

Will Palladium Extend Losses?

Despite giving up both the $3000 and $2000 thereafter after the Russian-Ukrainian war, now analysts expect palladium to regain some ground as demand improves on industrial metals while China eases Covid restrictions.