Palladium prices rose on Tuesday as the dollar declined against most major rivals following US inflation data, while US-China trade tensions cooled.
US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March’s 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
US Treasury Secretary Scott Bessent hailed the “very productive talks” with Chinese counterparts, and praised the place of negotiations besides the serene Geneva lake.
Bessent asserted the tariff pause will carry on for 90 days with both sides cutting tariffs by 115%.
Bessent said cutting tariffs below 10% wouldn’t be feasible, but the level specified by President Trump in early April at 34% would be a “ceiling”.
Otherwise, the dollar index fell 0.4% as of 14:55 GMT to 101.4, with a session-high at 101.7, and a low at 101.2.
Palladium June futures rose 0.6% as of 14:56 GMT to $947.5 an ounce.
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