Spot palladium and platinum rose sharply on Wednesday as bets on lower prices were reversed in thin conditions after the metal broke above key chart levels, while spot gold rose as weak U.S. data weighed on the dollar.
Palladium surged overnight in Asia, hitting 14-month highs. Traders said a wave of short covering was likely triggered after the metal broke above $700 an ounce, and then above last week's 14-month peak of $723 an ounce.
Spot palladium was up 4.11 percent at $722.50 ounce, having risen as high as $746.10 an ounce in Asian trading hours. The move was likely to have been exacerbated by thin liquidity, analysts said.