Palladium keeps rising on stronger demand outlook

Palladium prices rose on Tuesday even as the dollar gained ground against most major rivals following inflation data, and amid optimism for global demand.

Earlier US data showed consumer prices rose 3.2% y/y in February, up from 3.1% in January, while analysts expected no change.

On a monthly basis, US consumer prices rose 0.4% last month, accelerating from 0.3% in January. 

Core prices, excluding food and energy, rose 3.8% y/y in February, slowing down from 3.9%. 

According to the Fedwatch tool, the prospects of the Fed maintaining interest rates unchanged at the June meeting rose from 28.4% to 34.6%. 

Palladium has been recently buoyed by expectations of more stimulus measures by the Chinese government to support growth.

Otherwise, the dollar index rose 0.1% as of 16:34 GMT to 103.01, with a session-high at 103.1, and a low at 102.7. 

On trading, palladium June futures rose 0.1% as of 16:35 GMT to $1,052 an ounce.