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Palladium drops over 1% on rising dollar and US political tensions
Palladium prices fell on Thursday, as the US dollar rose against its peers, which weighs down on industrial metals in addition to political tensions in the US.
Thousands of Trump supporters yesterday stormed the US Capitol building to protest the session that declared Joe Biden the new President of the United States.
Investors are optimistic about the Democrats' control of both houses of Congress and the presidency, as they intend massive stimulus packages to bolster the economy, which would lift demand for industrial metals such as copper and palladium.
The dollar index rose against a basket of major currencies by 0.3% to 89.8 points as of 14:32 GMT, after hitting a high of 89.9 points and a low of 89.3 points.
Palladium December futures fell 1.1% to $2,424.5 an ounce as of 14:33 GMT, with a high of $2,464.5 and a low of $2,408.5.
US unemployment claims better than expected
At 13:30 GMT, the US economy released its reading of the weekly unemployment claims for the week ending January 2 at 787K, better than forecasts of 798K, and better than the previous reading of 790K after it was revised from 787K. This data is positive for the US economy.
MoreDollar rebounds from nearly 3-year low on bargain hunting
The US dollar rose on Thursday, heading for its first gain in the last 6 days, to continue its recovery attempts from the lowest level in about 3 years, as low levels attracted bargain hunters, despite the strong market sentiment after fears over the US political tensions eased following the US Congress official announcement of Joe Biden's victory of the US presidential election.
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