Palladium sheds earlier gains on stronger dollar

Palladium prices plummeted today, shedding gains reached earlier in the session, as US dollar strengthened after the monthly job report.

The US dollar index rose after labor data showed that the US economy has added 224,000 new jobs in June, while analysts expected an additional 170,000.

However, analysts predict that palladium will continue to rise amid growing concerns about the climate change, carbon emissions and car exhausts, as the metal is being used to reduce emissions and car companies are increasing demand on it.

In January, palladium was the most expensive precious metal for the first time since 2002, and also rose by 16% during last month, as its value also jumped above the gold.

The dollar index (against a number of major currencies) rose by 0.6% to 97.3 points at 14:23 GMT, reaching a high of 97.4 points and a low of 96.7 points.

In terms of trade, by 14:24 GMT, palladium futures (September delivery) fell by 0.7% to $1554.9 per ounce, and recorded a high of $1571.6 and a low of $1553.