Palladium rises nearly 4%, consolidates above $2,000

Palladium prices rose on Tuesday, as the US dollar fell against most currencies, amid expectations about the global economy's gradual recovery from the coronavirus pandemic.

This comes amid a strong global demand for metals and commodities, while supply continues to slow down, which continued to buoy prices.

The rising prices led to a spike in inflation in some economies and led central banks to hint at reducing the pandemic quantitative easing and asset purchases programs.

Palladium, nickel and platinum have link with the auto industry, and the latter is suffering from a shortage of electronic chips, but optimism is growing in the industry, after many companies started to work on the shortage of chips.

The famous US billionaire and Tesla founder Elon Musk said that the ongoing semiconductor crisis will be over soon, which would lift the demand for metals such as palladium and nickel.

The dollar index fell against a basket of major currencies by 0.3% to 93.6 points as of 13:45 GMT, after hitting a high of 93.9 points and a low of 93.5 points.

Palladium December futures rose 3.8% to $2,088.5 an ounce.