Palladium plumbs $1,600 as investors await Fed's decisions

Palladium prices fell on Tuesday as the dollar edged lower while investors await the Federal Reserve's policy decisions.

The Fed is starting its two-day policy meeting today and will issue its decisions tomorrow, expected to hike rates to control inflation.

A rate hike might support the dollar, in turn pressuring most commodities and industrial metals. 

Palladium is used heavily in electronics and the car industry for its ability to reduce emissions. 

The dollar index stabilized at 102.2 as of 14:58 GMT, with a session-high at 102.6, and a low at 102.1. 

Palladium futures due in March fell 2% to $1,595 an ounce as of 14:58 GMT. 

What's expected from Palladium in the days to come?

Despite giving up the $2000 barrier and before it the $3000 following the Ukrainian war, analysts still expect palladium to gain ground as demand increase while China eases Covid 19 restrictions.