Palladium Price Analysis: XPD/USD awaits US data around weekly top

• Palladium remains steady after refreshing one-week high.
• Risk appetite remains firm on stimulus, trade news.
• Fed’s move, cautious mood ahead of US PCE inflation probe bulls.

Palladium (XPD/USD) rises 0.30% intraday during the three-day uptrend refreshing weekly high near $2660, around $2,655 by the press time of early Friday. The precious metal follows gold to portray the recent subdued moves but stays positive tracking the inverse correlations with the US dollar.

The US dollar index (DXY), a gauge of the US currency versus the major six counterparts, snaps a two-day run-up with 0.05% downside near 91.77 as the markets await the key data, namely Personal Consumption Expenditure (PCE) inflation figures for May. Also challenging the sentiment, as well as Palladium prices, could be the mixed headlines affecting risk appetite that goes hand in hand with the metal prices.

Although US President Biden’s ability to deliver promised stimulus favored market sentiment, the Fed’s recalling of the pandemic-led relief measures for the large banks and fears of Delta Plus variant of the covid probe the risk-on mood. Also, mixed plays between the optimism concerning the US-EU trade relations and Australia’s local lockdowns, as well as the EU’s rejection to have a summit with Russian leader Vladimir Putin, challenges the risk appetite.

These headlines help the S&P 500 Futures to remain mildly bid and also weigh on the DXY. However, the lackluster moves of the US Treasury yields and a light calendar seem to probe palladium traders of late.

That said, Fedspeak and chatters concerning the coronavirus, as well as global trade, add to the market’s watch-list, in addition to the US PCE inflation data for May.

Also read: US May PCE inflation preview: Data likely to reaffirm FOMC's hawkish tilt

Technical analysis

The receding bearish bias of MACD awaits a clear break of 100-day SMA, around $2,660, to welcome Palladium bulls. Following that, multiple resistances around $2,690 and May’s low around $2,725. Alternatively, 10-day SMA near $2,635 and the $2,600 round-figure could test the commodity sellers before highlighting the monthly low of $2,461.