Palladium rallies 3.5% on global demand prospects

Palladium prices rose on Tuesday on prospects of increasing global demand, especially in China, the world's largest metals consumer. 

The Federal Reserve, the European Central Bank, and Bank of England all voted to increase interest rates to control runaway inflation.

Monitors believe the Fed and other central banks will take a path of slowing down the policy tightening gradually to avoid recession.

It's clear now that global central banks have managed to keep a lid on runaway inflation, especially in the US and euro zone.

Otherwise, the dollar index rose 0.2% to 103.8 as of 15:33 GMT, with a session-high at 103.9, and a low at 103.2.

Palladium futures due in March rose 3.7% to $1,638 an ounce as of 15:35 GMT. 

What's expected to come? 

Analysts believe China's recovery will lead to much stronger demand on industrial metals such as palladium.