Palladium rallies over 1% in American trade

Palladium prices surged in American trade even as the dollar hit a one-week high, following an array of data from the US, the world's largest economy. 

As of 02:58 GMT, palladium rose 1.43% to $989.00 an ounce from the opening of $975.05, while the dollar index rose 0.32% to 93.61 from the opening of 93.31, marking the highest since October 10. 

Earlier US data showed industrial production grew 0.3% in September in line with expectations, compared to a 0.7% drop in August, revised from a 0.9% fall, while the Capacity Utilization Rate rose to 76.0% from 75.8% in August, missing expectations of 76.2%. 

Otherwise, 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.