Palladium prices witnessed a decline on Wednesday, driven by the strengthening dollar index and growing apprehensions about Chinese demand.
Chinese services reported their slowest expansion in eight months throughout August, indicating a significant deceleration in the country’s overall economy.
While metals had recently enjoyed gains thanks to the weakening dollar in preceding weeks, the resurgence of the greenback, particularly supported by robust export data from the United States, has once again put downward pressure on metal prices.
As of 16:24 GMT, the dollar index marked a 0.2% increase, reaching 105.01, with a session-high at 105.02 and a low at 104.5.
In the realm of trading, palladium futures, which are prominently utilized in the automotive sector to mitigate exhaust emissions, experienced a decline of 1.5% as of 16:16 GMT, settling at $1,195 per ounce.
This downward movement in palladium prices underscores the intricate interplay between global economic factors and the commodities market, as investors closely monitor shifts in the dollar’s value and the health of major economies, particularly China and the United States.
