Palladium prices rose on Friday as the dollar lost ground against most major rivals following  US payrolls data.

US unemployment fell to 3.5% in July from 3.6%, beating estimates of no change.

US economy added 187 thousand new jobs in July, below estimates of 205 thousand, while the previous reading was revised to show a 185K addition instead of 209K.

Finally, average work hours fell by just 0.1 hour to 34.3 hours in July, while average hourly earnings rose by 0.4% to $33.74. 

The Fed continues to closely monitor latest US jobs data to monitor the impact of the recent policy decisions. 

Otherwise, the dollar index fell 0.7% as of 16:52 GMT to 101.7, with a session-high at 102.6, and a low at 101.7. 

Palladium futures due in September rose 0.5% as of 16:53 GMT to $1,264 an ounce. 

Oil prices rose in European trade, extending gains for the second day and almost hitting four-month highs and on track for the sixth weekly profit in a row on expectations the market will undergo a severe shortage in the second half of the year.

Saudi Arabia announced an extension to its voluntary production cuts for an additional month in September, and opened the door for another extension, while Russia intends to cut its oil exports by 300 thousand barrels next month.  

Prices are also boosted by the steep drop in US crude stocks, a positive sign for strong demand in the world's largest oil consumer.

Global Oil Prices

US crude rose 0.6% to $82.21 a barrel, while Brent climbed 0.7% to $85.81 a barrel, with a session-low at $85.12. 

US crude rose 2.5% on Thursday, resuming gains after a drop on profit-taking away from four-month highs at $82.39.

Brent rose 2.3% after a 2.8% drop on profit-taking off April highs at $85.94 a barrel.

Weekly Trading

Oil prices are on average up 1.75% so far today, on track for the sixth weekly profit in a row.

Heavy Shortages 

Citibank said in a memo that higher oil prices reflect a tighter market as the impact of the Russian and Saudi production cuts become apparent while summer demand on gasoline increases.

Analysts expect more gains in oil prices during the summer, with Brent potentially averaging $83 a barrel in the summer.

Saudi Cuts

Officials at the Saudi energy ministry said the kingdom will extend its voluntary production cuts estimated at a million bpd for September. 

Additionally, Russian Vice Prime Minister, Alexander Novak, said Russia is seeking to raise global oil prices in cooperation with Saudi Arabia, and will cut exports by 300 thousand bpd in September. 

US Stocks 

The Energy Information Administration reported a huge tumble in US crude stocks last week by 17 million barrels to 439.8 barrels, while analysts only expected a drop of 900 thousand barrels.

Gasoline stocks rose 1.5 million barrels to 219.1 million barrels, while distillate stocks fell 800 thousand barrels to 117.2 million barrels.

US economy added 187 thousand new jobs in July, below estimates of 205 thousand, while the previous reading was revised to show a 185K addition instead of 209K. 

US unemployment fell to 3.5% in July from 3.6%, beating estimates of no change.