Palladium futures fell on Wednesday, following gloomy global economic forecasts and the coronavirus pandemic severe impact.
The International Monetary Fund estimated that the global GDP will shrink by 4.9% in 2020, which higher than the previous estimate in April of 3%, but the IMF expects a growth of 5.4% in 2021.
The IMF also forecast the US economy to shrink by 8% in 2020, and to grow by 4.5% in 2021, and the Chinese economy to grow by 1% in 2020 and by 8.2% 2021.
The global recession will affect various economic sectors, chief among those is the automotive industry, that heavily uses palladium in the manufacturing of car parts and components to reduce pollutant emissions.
The dollar index fell against a basket of currencies by 0.3% to 96.9 points as of 13:50 GMT, after it hit a high of 97.01 and a low of 96.5.
Palladium September futures fell 1.6% to trade at $1,919.2 an ounce, after hitting today's high at $1,965 and a low of $1,905.3.