Palladium falls after yesterday's gains

Palladium prices fell on Tuesday, and gave up its early gains as the US dollar rose against most of its peers and hit its 1-week high.

Optimism about the strength of the global demand for industrial metal is lifting demand for Palladium, as industrial activity will return to pre-pandemic levels.

While this comes in tandem with the world's shift from fossil fuels to  other environmentally-friendly methods such as electric cars, which ought to raise demand for palladium, which is heavily used in the manufacturing of car parts that reduce carbon emissions and air pollutants, which would lead to increased demand for palladium.

The dollar index rose against a basket of major currencies by 0.2% to 90.1 points as of 14:19 GMT, after hitting a high of 90.2 points and a low of 89.9 points.

Palladium March futures fell 1.4% to $2,357.5 an ounce as of 14:21 GMT, with a high of $2,340.5 and a low of $2,356.