Palladium falls below $2,000 despite falling dollar

Palladium prices fell on Wednesday, dropping below the $2,000 barrier, despite the US dollar's slight drop against most of its peers.

This came amid concerns over the weak global supply of industrial metals such as platinum, palladium and nickel, while demand from the steel industry continues to increase, in addition to its usage in the manufacturing of electric car batteries.

Palladium is heavily used in the manufacturing of car components that reduce polluting emissions, and also in the manufacturing of electric cars, and demand has increased in recent years due to efforts to combat the global climate change.

The dollar index fell against a basket of major currencies 0.2% to 93.7 points as of 13:58 GMT, after hitting a high of 94.01 points and a low of 93.7 points.

Palladium December futures fell 1.4% to $1,976.5 an ounce as of 13:58 GMT.