Palladium prices fell on Friday after a return from the holidays in the US, with the dollar advancing against major rivals while Covid 19 infections spread in China. 

Chinese authorities continue to impose more stringent limitations on movements as infections spread to many cities.

Health authorities registered over 32 thousand Covid 19 infections on Thursday alone, forcing them to impose new closures and restrictions on trasnport. 

China is the world's largest metals and commodities importer, including palladium, with prices reacting rapidly to Chinese developments. 

The dollar index rose 0.1% to 106.2 as of 15:12 GMT, with a session-high at 106.4 and a session-low at 105.6. 

Palladium futures due in March fell 3.1% as of 15:12 GMT to $1,829 an ounce. 

Oil prices rose in European trade for another session away from 10-month lows amid ongoing talks in the EU on putting a price ceiling on Russian crude. 

Prices are also boosted by a drop in US crude stocks last week according to official EIA data. 

Prices Today

US crude rose 2.5% to $79.88 a barrel, while Brent rose 1.9% to $86.84 a barrel, with a session-low at $85.20.

US crude rose 0.7% on Thursday, while Brent added 0.6% away from ten-month lows plumbed recently. 

Price Ceilings

EU countries continue their discussions on putting a price ceiling on Russian crude, with negotiations expected to resume today. 

The executive branch of the EU suggested putting the ceiling at $65, with Poland and the Baltic countries considering it too generous.

Other countries with large shipping industries like Greece and Malta refused to push prices below $70, which was the upper limit imposed by the EU earlier this week.

US Stocks

The Energy Information Administration reported a tumble in US crude stocks by 3.7 million barrels to 431.7 million barrels, while analysts expected a drop of 2.5 million barrels.

Gasoline stocks rose 3.1 million barrels to 211 million barrels, while distillate stocks rose 1.7 million barrels to 109.1 million barrels.

Dollar fell in European trade on Friday against a basket of major rivals, extending the gains for the fourth day in a row, and almost hitting three-month lows, and on track for the second weekly loss in three weeks following weak US data and the release of Fed's minutes. 

Such Fed minutes clearly bolstered the case for a 0.5% rate hike in December and a slower pace of policy tightening.

The Index

The dollar index fell 0.25% to 105.68, with a session-high at 106.16, after closing down 0.2% yesterday, the third loss in a row, edging near three-month lows at 105.34. 

Dollar is now down 1.2% so far this week on track for the second weekly loss in three weeks. 

Weak Data

Recent US data showed manufacturing and services activities tumbled heavily in November, hinting at potential economic recession in the fourth quarter of the year.

The Fed

Fed's minutes released for the November 1-2 meeting showed most policymakers agreed it's important to slow down the pace of policy tightening.

Fed Minutes

Chances for a 0.5% rate hike in December by the Fed rose from 75% to 85% after Fed's minutes, while chances for a 0.75% rate hike fell from 25% to 15%.

Gold prices rose in European trade on Friday while maintaining gains for the fourth day in a row, amid calm trading in markets due to the US holiday, and amid weak trading by the dollar against major rivals following the release of Fed's minutes. 

Such Fed minutes clearly bolstered the case for a 0.5% rate hike in December and a slower pace of policy tightening. 

Prices Today

Gold prices rose 0.35% to $1,761 an ounce, with a session-low at $1,750, after closing up 0.35% yesterday, the third profit in a row as the dollar lost ground against rivals.

The Dollar

The dollar index last traded near three-month lows at 105.34 against a basket of major rivals. 

Latest Federal Reserve minutes showed US policymakers are content about their ability to move forward and raise interest rates in a slower place. 

Recent US data showed manufacturing and services activities tumbled heavily in November, hinting at potential economic recession in the fourth quarter of the year. 

The Fed

Fed's minutes released for the November 1-2 meeting showed most  policymakers agreed it's important to slow down the pace of policy tightening. 

Fed Minutes

Chances for a 0.5% rate hike in December by the Fed rose from 75% to 85% after Fed's minutes, while chances for a 0.75% rate hike fell from 25% to 15%. 

Estimates 

Analysts expect gold prices to face stiff technical resistance at $1,757 and potentially head lower after that. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday for the second day in a row at a total of 906.93 tones, the highest since November 14.