Palladium prices rose on Tuesday even as the dollar gained ground against most major rivals and ahead of crucial US inflation data.

Now investors await important US inflation data later this week to get clues about the likely path ahead for monetary policies. 

According to a Reuters survey, US inflation was up 0.6% m/m in August, compared to 0.2% in July. 

Later this month, the Federal Reserve is holding its periodic policy meeting, expected to hold interest rates unchanged.

Otherwise, the dollar index rose 0.2% as of 16:17 GMT to 104.8, with a session-high at 104.9, and a low at 104.4.

As the dollar strengthens, prices of dollar-denominated metals futures suffer as they become costlier to holders of other currencies. 

Palladium futures due in December rose 1.7% as of 16:18 GMT to $1240 an ounce. 

Oil prices surged in European trade on Tuesday, scaling a ten-month high and extending gains for the third straight session amid optimism by OPEC for the global demand.

It comes in a time of severe supply shortages in the last few weeks of the year after decisions by Saudi Arabia and Russia to extend voluntary production cuts to the end of the year.

Global Oil Prices

US crude rose 2.2% to $89.16 a barrel, the highest since November 2022, with a session-low at $87.23, while Brent rallied 2.0% to $92.28 a barrel, the highest since November 2022.

US crude rose 0.2% on Monday, while Brent added 0.25%, the second profit in a row as the dollar index lost ground.

OPEC's Estimates 

OPEC maintained its optimistic outlook for demand growth worldwide this year and next year,while also expecting flexible global economic growth despite higher interest rates.

OPEC specifically expects global demand on crude to rise by 2.25 million bpd in 2024, and to rise by 2.44 million bpd this year.

Severe Shortages 

In a step that surpassed expectations, both Saudi Arabia and Russia decided to extend their voluntary oil production cuts for three more months until the end of the year, while analysts expected only a single month extension.

The cuts came in addition to the official cuts enacted by OPEC+ which were announced last April.

Both countries naturally aim to stabilise and boost global oil prices with such strategies, which already buoyed prices by nearly 27% so far since June.

US Stocks 

Later today, the American Petroleum Institute will release initial data on US crude stocks later today, expected to show an inventory drawdown for the fifth week in a row. 

World's eyes are fixed on the annual announcement of the new iPhone by Apple, this time the iPhone 15, which is scheduled today, Tuesday. 

It's a crucial annual event that could boost the company's shares considerably if the consumers were sufficiently blown away by Apple's new products. 

The US tech giant is betting strongly on the new iPhone 15 to boost sales after several quarters of slugging growth. 

Timing 

Apple will reveal the new iPhone 15, with the USB-C charging port, at 10:00 GMT, California time.

The Specs 

The iPhone 15 will be available with two starter editions, and two more developed editionas.

The started editions, simply called iPhone 15 and iPhone 15 Plus will get some of the Pro features released last year, including a dynamic front, and 48 megapixel back camera, an A16 chip. 

More important changes will occur for the more developed versions, with a new titanium design, and more slender borders, and more advanced 3 nano chips. 

The more advanced versions of the iPhone 15 will also get a new camera with a deeper visual approximation, which confers better quality. 

Obstacles Facing Apple 

Apple is facing a few obstacles for its plan to revitalize sales.

Mainly, demand on smartphones is waning considerably, and a potential revolt against its products in China due to political considerations. 

Also the shift to the USB-C charging ports could annoy many of the consumers who are used to the Lightning charging systems. 

Gold prices fell in European trade on Tuesday to near one-week low amid increasing pressures on the dollar against a basket of major rivals and ahead of US inflation data.

US consumer and producer prices data will be released later this week and will offer important clues on the likely path ahead for US interest rates. 

Prices Today

Gold prices fell 0.2% to $1,918 an ounce, with a session-high at $1,924 an ounce, after rising 0.2% yesterday, the second profit in three days away from one-week lows at $1,915. 

The Dollar

The dollar index rose 0.25% on Tuesday, resuming gains after a short hiatus that moved the index away from a six-month high at 105.15. 

Dollar is gaining ground ahead of important US data this week, which includes data on US consumer and producer prices. 

Positive data will obviously raise the odds for another Federal Reserve interest rate hike at the November policy meeting.

The Fed

Ahead of the upcoming September policy meeting, Federal Reserve policymakers have been clear about not wanting to raise interest rates once more this month.

US Rates

Odds for another 0.25% Fed interest rate hike in September stand at 7%. 

However, odds for a 0.25% Fed interest rate hike at the November meeting stand at a stronger 42%. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 1.75 tonnes yesterday to a total of 884.89 tonnes, the lowest since August 24.