Palladium strives to recover from 5-week low on positive auto industry news

Palladium prices rose today, to head for the first daily gain in 3 days, in recovery attempts from a 5-week low, buoyed by the latest developments in the automotive industry, after news emerged that the US will delay imposing tariffs on EU cars.

Palladium prices rose by 1.4% to $1,708.99 an ounce, after opening at $1,686.20 with a session-high of $1,686.20.

Palladium closed lower by 3.2% yesterday, in its second straight daily loss and hit a 5-week low of $1,680.32 an ounce, after car sales in China dropped, and US President Donald Trump's remarks that raised the market;s doubts about the US-China trade deal.

Palladium prices jumped to an all-time high of $1,823.10 an ounce on October 30, amid supply shortage concerns and growing hopes about a final trade deal between the world's largest 2 economies.

Palladium is used in the manufacturing of car components that reduce exhaust emissions, which has increased its prices by more than 35% this, in addition to supply shortage concerns, which offset the global automotive industry slowdown. 

News reports showed that the US President Donald Trump will announce a 6-month delay for imposing new tariffs on European Union vehicles later this week, in his efforts to avert another damaging dispute with a major US trading partner.

At 17:00 GMT, US President Donald Trump will deliver an important speech at the New York Economic Club, which may provide fresh hints on the progress in the ongoing trade talks between Washington and Beijing.

Trump tweeted ahead of the speech about the US economic growth in his era and that forecast another record highs for US stocks.