Palladium rallies 2% to record highs as dollar slips

Palladium prices rose over 2% in American trade to record highs as the dollar index fell off November 13 highs for the third session out of four, following earlier US and speeches by Fed governors today. 

As of 02:57 GMT, palladium rose 2.57% to $1,213.53 an ounce, marking a record high at $1,217, while the dollar index shed 0.14% to 97.01. 

Federal Reserve Governor Richard Clarida was interviewed today by Bloomberg TV & Radio, while Federal Reserve Governor Randal Quarles spoke about the economic outlook and monetary policy at the Council on Foreign Relations, in New York. 

Earlier US data showed the final Markit Manufacturing PMI down to 55.3 in November from the flash trading of 55.4, and down from 55.4 in October. 

Both Federal Reserve Bank of New York President John Williams and Fed Governor Lael Brainard are due to speak at The Evolving Structure of the US Treasury Market conference, hosted by the Federal Reserve Bank of New York.

On Sunday, the White House released a statement of the dinner attended by world leaders at the G20 Summit, with both President Donald Trump and Xiu Jinping discussing the trade dispute between the two countries. 

The statement noted that Trump agreed to hold off raising tariffs on $200 billion worth of Chinese product by January 2019, as US and Chinese officials will continue to negotiate the hanging trade issues in the next 90 days. 

Trump and Jinping reached an agreement to hold off the reciprocal tariffs for three months until negotiations progress far enough. 

Otherwise, the Federal Open Market Committee's minutes for the November 7-8 meeting indicated another rate hike soon enough, while policymakers discussed the appropriate timeline to halt hikes and the path of policy tightening.