Palladium prices rise even as dollar edges up

Palladium prices tilted higher in American trade even as the dollar index gained ground, following earlier data from the US, the world's largest economy. 

As of 02:40 GMT, palladium prices rose 0.38% to $866.65 an ounce from the opening of $863.39, while the dollar index rose 0.09% to 97.64 from the opening of 97.53. 

Palladium is regaining its footing after tumbling recently on profit-taking, after prices hit the highest since September 2014 earlier this month, as Standard Chartered recently projected a supply deficit of 563 thousand ounces in the palladium market this year, compared to a deficit of 459 thousand in 2016. 

The bank also expected more gains for palladium prices in the next 12 months to 2014 highs

Earlier from the US, Federal Reserve Bank of Chicago President Charles Evans and Federal Reserve Vice Governor Stanley Fischer made speeches, with Evans talking about current economic conditions and monetary policy at the New York University Money Marketeers event, where he mentioned the possibility of delaying rate hikes until the December meeting, expressing the need to gradually raise rates and trim down the federal balance sheet, while saying the Fed shouldn't hurry in its tightening to avoid setbacks. 

Evans said the US economy is nearing full employment as the economy registers noticeable improvements, while mentioning that it isn't possible for interest rates to settle at low levels for a long time without incurring risks.

Otherwise, he expected the Fed to increase rates in December or beyond, asserting the need to see evidence of stronger inflation and not just stabilizing prices, as recent data showed slowing inflationary pressures, which hinders the march towards the bank's 2% target.