Palladium prices rose over two percent in American trade to December 5 highs when it scaled record highs, while the dollar index hit November 28 highs, following earlier inflation data from the US.
As of 03:11 GMT, palladium rose 2.26% to $1,256.58 an ounce, marking week highs, while the dollar index inched up 0.06% to 97.28, marking two-week highs.
Earlier US data showed producer prices rose 0.1% in November, beating estimates of no change, while slowing down from October's 0.6% increase.
Core prices, excluding food and fuel, rose 0.3%, beating forecasts of 0.1% and missing estimates of 0.5%.