Palladium prices rose on Tuesday as the dollar lost ground against most major rivals following inflation data.
US consumer prices rose 7.1% y/y in November, below estimates of 7.3%, and slowing down fron 7.7% in the previous reading.
Core prices, excluding food and energy, rose 6% y/y, slowing down from 6.3% in the previous reading, and below estimates of 6.1%.
On a monthly basis, consumer prices rose 0.1% in November, below estimates of 0.3%, and down from 0.4% in the previous reading.
Such data comes ahead of the Federal Reserve's policy meeting today and all but confirms the Fed will raise interest rates by only 50 basis points.
Thus, the dollar index tumbled 1.2% as of 15:18 GMT to 103.9, with a session-high at 105.1, and a low at 103.5.
Palladium futures due in March rallied 5.1% to $1,980.5 an ounce as of 15:19 GMT, after surpassing $2,000 earlier in the session.