Palladium Hits Four-Week High

Palladium rose toward $1,310 per ounce, reaching four-week highs as softer-than-expected US inflation reinforced expectations that the Federal Reserve will keep interest rates on hold. US consumer inflation eased to 3.5% year-on-year in June from 4.2% in May, prompting traders to abandon expectations of a rate hike at the Fed’s July 28-29 meeting. The US dollar also weakened, making dollar-denominated precious metals more attractive to overseas buyers. Meanwhile, investors monitored developments in the Middle East after President Donald Trump withdrew a proposed 20% charge on cargo shipments through the Strait of Hormuz, while Brent crude remained near $86 a barrel after surging 11% over the previous two sessions amid renewed US threats to strike Iranian targets. Separately, Sibanye-Stillwater announced plans to advance seven platinum group metals mining projects in South Africa, with the first phase ahead of schedule and production expected to begin in March next year.