Palladium prices rose on Friday even as the dollar inched higher against major rivals, however, the industrial metal remained below $1000.

Palladium prices are down 13% so far this year, after marking its highest level within the past 52 weeks at $1627, and the lowest level in the past 52 weeks at $854. 

Palladium is used heavily in the automotive sector, and especially in diesel cars to reduce exhaust fumes.

However, as EV cars adoption spreads, demand on internal combustion cars and palladium in turn will decline accordingly. 

Palladium’s Historical Pricing 

Across the previous decade, palladium’s instant prices wavered between $500 and $1500, beforere surging to a record high at $3440 in March 2022 following the onset of the Russian invasion of Ukraine, which disrupted supplies. 

However palladium now has lost over two thirds of its valuation due to steep increase in EV adoption rates. 

Otherwise, the dollar index rose 0.1% as of 15:43 GMT to 105.3, with a session-high at 105.4, and a low at 105.1. 

Palladium June futures due in June rose 2% to $990 an ounce as of 15:44 GMT. 

Bitcoin rose on Friday on track for the second straight day, almost hitting two-week highs as risk appetite dominates the markets. 

US 10-year treasury yields on the other hand lost ground following weak labor data, which boosted the odds of an early Federal Reserve interest rate cut in the summer. 

Price

Bitcoin rose $804, or 1.3% at Bitstamp to $63,876, with a session-low at $62,675, after closing up 3% on Thursday, the first profit in four days away from one-week lows at $60,634. 

The world’s most valuable cryptocurrency marked a two-week high on Monday at $65,513 before entering another downward correction.

Crypto Market Value 

The market value of cryptocurrencies rose by $30 billion on Friday to $2.365 trillion as both ethereum and bitcoin powered up.

US Stocks 

Wall Street rallied on Thursday with Dow Jones marking five-week highs following strong earnings results by major banks and other corporations, which improved the odds of a Fed September rate cut. 

US Treasury Yields 

US 10-year treasury yields fell 0.3% on Friday, almost touching a four-week low at 4.420%, in turn boosting risk appetite in the market. 

The developments came after weak US unemployment claims data this week, which edged up the odds of a Fed rate cut in the summer. 

US unemployment claims rose by 22,000 last week to 231,000, passing estimates of 212,000 by a wide margin.

These are the worst results in 2024, and a potential sign of a slower labor market. 

Following the data, the odds of a Fed 0.25% interest rate cut in June rose to 9%, and to 21% for July, and to 70% for September. 

According to the Fedwatch tool, investors are now expecting two Fed interest rate cuts overall this year. 

Silver prices rose in European trade on Friday on track for the third straight profit, scaling a three-week high and approaching three-year highs as US 10-year treasury yields lose ground.

The white metal is heading for the largest weekly profit since early April amid improving investment demand and hopes of increasing actual demand in China. 

Prices 

Silver prices rose 1.5% today to $28.77 an ounce, the highest since April 19, with a session-low at $28.23, after closing up 3.7% yesterday, the second profit in a row, and the largest since April 3 following weak US data. 

The white metal hit a three-year high at $29.80 an ounce before entering a short-term correction.

Weekly Trades

Silver prices are up 8% so far this week, on track for the first weekly profit in three weeks, and the largest since early April.

US Yields 

US 10-year treasury yields fell 0.3% on Friday on track for the second straight session, plumbing four-week lows at 4.420%. 

The development comes after unemployment data showed more signs of a slower US labor sector, and stronger odds of interest rate cuts this year.

US Rates

Following the data, the odds of a Fed 0.25% interest rate cut in June rose to 9%, and to 21% for July, and to 70% for September. 

According to the Fedwatch tool, investors are now expecting two Fed interest rate cuts overall this year. 

Chinese Data

Earlier Chinese trade balance data showed that imports and exports rose past estimates in April, in another sign of improving economic performance and actual demand. 

Sterling rose in European trade on Friday against a basket of major rivals, extending gains for the second straight day against the dollar away from recent two-week lows and after hot UK growth data.

The data hurt the odds of early UK interest rate cuts in June, as investors now await important inflation and wages data this month.

The Price 

GBP/USD rose 0.15% to $1.2541, with a session-low at $12512, after closing up 0.2% on Thursday, the first profit in three days away from two-week lows at $1.2446. 

Earlier weak US unemployment claims data dragged the dollar down against major rivals this week. 

The BOE 

As expected, the Bank of England maintained interest rates unchanged today at 5.25%, the highest in 15 years, for the sixth meeting in a row. 

The BOE said the members need to see more evidence that inflation is heading towards 2% before voting in favor of cutting interest rates. 

Bailey 

BOE Governor Andrew Bailey said at his post meeting press conference that the bank hasn’t yet reached the point of cutting interest rates, as such a step requires inflation to steadily approach the 2% in upcoming months. 

He said that a June interest rate cut isn’t ruled out but it isn’t realistic. 

BOE Forecasts

The BOE expects UK inflation to hit 2% in the second quarter of the year, before rising to 2.6% within a year. 

UK Rates 

Right now, the odds of a June BOE interest rate cut stood at 50%. 

Hot Growth Data

Earlier London data showed the GDP grew 0.6% in the first quarter, passing estimates of a 0.4% growth rate, and after a 0.3% contraction in the previous quarter. 

UK Capital Economics' chief economist Roth Gregory said the UK economy remains somewhat weak, but all early signs indicate the GDP growth will be strong in April.

She believes that under such data, the BOE isn’t in any rush to cut interest rates.