Palladium rallies over 3% as dollar declines

Palladium prices gained ground on Tuesday as the dollar slipped against most major rivals and after the IMF released its forecasts for the global economy. 

IMF

The International Monetary Fund expects global growth at 30-year lows, at 3% in five years from now, the lowest since 1990. 

The IMF expects growth this year at 2.8%, and 3% at 2024, down 0.1% from recent estimates by the Fund. 

It also said it doesn't expect the global economy to rebound to pre-Covid 19 levels in the medium term. 

The IMF lauded China and South Korea's progress in raising standards of living, however other regions were hit amid geopolitical tensions, such the Russian-Ukrainian war, and Brexit. 

The fund expects the US to grow by 1.6% this year, and for the euro zone to grow only 0.8% this year, while expecting the UK economy to contract by 0.3%.

For China, the IMF expects a 5.2% growth rate, and 5.9% for India, and a 0.7% growth rate for Russia this year. 

As for global inflation, the IMF expects it to decline from 8.7% in 2022 to 7% this year as energy costs decline. 

Inflation

Now investors await crucial US inflation data later this week to gauge the probable path ahead for the Federal Reserve's monetary policies. 

Otherwise, the dollar index fell 0.4% as of 15:19 GMT to 102.1, with a session-high at 102.5, and a low at 102.01. 

Palladium futures due in June rose 3.3% to $1,454.5 an ounce as of 15:20 GMT.