Palladium tumbles over 3%, extending heavy losses

Palladium prices fell on Tuesday even as the dollar lost ground against most major rivals, with traders concerned about weakening demand.

The Chinese Parliament has convened today to discuss ways to boost growth and deal with the real estate market after a crisis threatened progress and hurt minerals demand. 

Palladium could also be underpinned by the recent drop in the dollar, as the Fedwatch tool showed the odds for a Federal Reserve interest rate cut in June up to 52.5%. 

Markets await an important Congressional testimony by Fed Chair Jerome Powell later this week, which could provide important clues on the future of US interest rates. 

The dollar index fell 0.1% as of 17:06 GMT to 103.7, with a session-high at 103.9, and a low at 103.5.

Palladium June futures fell 3.3% to $941 an ounce as of 17:08 GMT.