Palladium rose over one percent in American trade to September 28 highs, while the dollar index backed off August 20 highs, following earlier data from the US.
As of 02:24 GMT, palladium rose 1.59% to $1,085.14 an ounce, marking two-week highs, while the dollar index shed 0.24% to 95.27, marking September 28 lows.
Earlier US data showed consumer prices rose 0.1%, slowing down from 0.2%, while core prices rose 0.1%, also missing estimates of 0.2%.
On a yearly basis, consumer prices rose 2.3%, slowing down from 2.7%, while core prices rose 2.2%, below expectations of 2.3%.
Unemployment claims rose 7 thousand in the week ending October 6 to 214 thousand, while continuing claims rose 4K in the week ending September 29 to 1.660 million.