Palladium falls by more than 5% despite supply shortages fears

Palladium prices fell today as US dollar rallied against most major currencies, despite fears of global supply shortages.

A poll by Reuters for a number of analysts and commodity experts showed that palladium had faced times of oversupply and weak demand, but the deficit on the supply of the metal had caused its prices to triple by 2016.

Experts predict that the palladium market will see a deficit of 1.8 million ounces in 2019 and 1.9 million ounces by 2020, taking into account that its average production is estimated at 10 million ounces annually.

Separately, by 14:17 GMT, dollar index (against a number of major currencies) rose by 0.2% to 98.6 points, with a high of 98.9 points and a low of 98.5 points.

On the trading front, palladium futures for September delivery fell by 5.4% to $1,442.5 per ounce, and hit a high of $1521.3 and a low of $1433.1.