Palladium prices rose during Tuesday's trading, extending gains as markets monitored trade developments between the United States and other countries.

US President Donald Trump had announced the threat of imposing secondary tariffs on Russian exports at a rate of 100% within 50 days unless a settlement is reached in the conflict with Ukraine.

In a note issued Tuesday, analysts at ING Bank said: "If Trump moves forward and the proposed sanctions are implemented, it would radically change the outlook for the oil market in particular."

They pointed out that "China, India, and Turkey are the largest buyers of Russian crude oil. They will have to balance the benefits of buying discounted Russian oil against the cost of their exports to the United States."

Trump also announced on Monday the shipment of new weapons to Ukraine, and had stated on Saturday that he would impose a 30% tariff on most imports from the European Union and Mexico starting August 1, adding similar threats to other countries.

Tariffs increase the risk of a slowdown in global economic growth, which could reduce fuel demand and push oil prices lower.

In a related context, Russia is one of the largest exporters of metals, especially palladium. Therefore, any restriction on Moscow's exports would support prices.

Data released Tuesday showed that the Chinese economy slowed in the second quarter, as markets brace for a weaker second half of the year amid declining exports, falling prices, and persistently weak consumer confidence.

Tony Sycamore, an analyst at IG, said: "China’s economic growth came in above expectations, largely due to strong fiscal support and accelerated production and exports ahead of the US tariffs."

On the other hand, the US dollar index rose by 0.5% to 98.5 points as of 16:28 GMT, recording a high of 98.5 points and a low of 97.9 points.

As for trading, palladium futures for September delivery rose by 0.4% to $1,246 an ounce at 16:29 GMT.

Bitcoin prices declined on Tuesday due to profit-taking, pulling the digital asset back from its all-time high above $123,000 recorded yesterday.

This comes as markets brace for a pivotal week of legislative activity in the US crypto sector, with several major bills up for vote in Congress.

On a yearly basis, the cryptocurrency's price has more than doubled following US President Donald Trump's election victory.

Trump is widely known for his favorable stance toward digital assets. He previously spoke about Bitcoin during his campaign, and his family launched its own crypto project and token—sparking ethical debates around its implications.

Dan Coatsworth, investment analyst at AJ Bell, said: “Donald Trump talked about making America the crypto capital of the world, and now the market hopes those words become reality.”

He added: “Bitcoin’s recent price action suggests traders are expecting something big from this ‘Crypto Week,’ with the token up nearly 10% in just five days. It reflects a wave of FOMO—a recurring pattern whenever Bitcoin dominates headlines.”

He continued: “Crypto enthusiasts are convinced this is the future of finance. While there’s strong momentum from investors, governments, and corporations, the landscape remains uncertain with more questions than answers.”

What is 'Crypto Week' in the US?

Congress is set to vote this week on several key pieces of legislation that could shape the future of digital assets in the US. According to AJ Bell, the major bills include:

1. The Clarity Act

Full name: The Digital Asset Market Clarity Act

This bill aims to establish a clear regulatory framework for digital assets, including cryptocurrencies.

2. The Genius Act

Full name: The US Stablecoin Guidance and Innovation National Establishment Act

This bill would create the first federal regulatory framework for stablecoins—digital currencies pegged to traditional currencies like the US dollar.

The Senate passed the bill last month, marking a major step forward in digital asset regulation. It now awaits approval from the House of Representatives, and crypto advocates hope for a swift passage.

The law is significant because it would allow private companies to issue stablecoins. Both Amazon and Walmart have expressed interest in being early issuers.

3. The CBDC Act

Full name: The Anti-Surveillance Central Bank Digital Currency Act

This bill seeks to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC), amid concerns it could become a tool for government surveillance.

As of 14:14 GMT, Bitcoin was down 3.2% on CoinMarketCap, trading at $118,000.

Oil prices fell on Tuesday after US President Donald Trump’s announcement of a 50-day deadline to end the war in Ukraine and avert sanctions eased short-term supply concerns.

Brent crude futures dropped by 32 cents, or 0.5%, to $68.89 a barrel as of 10:03 GMT. US West Texas Intermediate (WTI) crude fell by 44 cents, or 0.7%, to $66.54.

Giovanni Staunovo, a commodities analyst at UBS, said: “The focus was on Donald Trump. There were fears that he would target Russia with immediate sanctions, but he has now granted an additional 50-day deadline.”

He added: “Fears of an imminent tightening in the market have subsided. That’s the main story.”

Oil prices had initially risen on the prospect of sanctions but gave up gains after the 50-day grace period was announced, raising hopes that sanctions might be avoided.

In a note released Tuesday, ING analysts said: “If Trump goes ahead and implements the proposed sanctions, it would drastically alter the outlook for the oil market.”

They noted that “China, India, and Turkey are the largest buyers of Russian crude. They will have to weigh the benefits of buying discounted Russian oil against the cost to their exports to the US.”

Trump had announced on Monday the delivery of new weapons to Ukraine, and had said on Saturday that he would impose 30% tariffs on most imports from the European Union and Mexico starting August 1, adding similar threats to other countries.

Tariffs raise the risk of a slowdown in global economic growth, which could reduce fuel demand and push oil prices lower.

Data released Tuesday showed that the Chinese economy slowed in the second quarter, with markets bracing for a weaker second half of the year amid falling exports, declining prices, and persistently weak consumer confidence.

Tony Sycamore, an analyst at IG, said: “China’s economic growth exceeded expectations, largely due to strong fiscal support and accelerated production and exports ahead of the US tariffs.”

He added: “Today’s weak China data has a direct impact on commodities, including iron ore and crude oil.”

Meanwhile, the Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) said, according to Russian media reports, that oil demand would remain “very strong” during the third quarter of the year, which should help maintain market balance in the short term.

The US dollar held steady just below its three-week high against a basket of currencies on Tuesday, ahead of the release of inflation data in the United States, which is expected to guide traders regarding short-term interest rate prospects.

The dollar has received support in recent weeks from the gradual rise in US Treasury yields, as investors monitor the possibility that Federal Reserve Chair Jerome Powell may be forced to leave office early, amid repeated criticism from US President Donald Trump.

Meanwhile, the euro, British pound, and Swiss franc recovered slightly from losses recorded the previous day, ahead of a series of economic data releases later today, including US inflation figures and the German investor sentiment index.

The euro rose by 0.2% to $1.1688, ending a four-day losing streak.

Roberto Cobo, a strategist at BBVA, said: “The release of US Consumer Price Index (CPI) data today will be a pivotal moment for the EUR/USD exchange rate.”

He explained that if the inflation data comes in stronger than expected, it will strengthen the Fed’s case for delaying rate cuts, providing short-term support for the dollar. But if the data disappoints, it will be harder for the Fed to justify a “wait-and-see” stance, which may lead to a dollar decline.

The dollar was little changed against the Japanese yen at 147.71 yen, after earlier touching 147.89 yen — its highest level since June 23.

The dollar index — which measures the performance of the US currency against six major peers including the yen and euro — edged down slightly to 98.003, below its overnight peak of 98.136, the highest since June 25.

Jerome Powell had previously stated that he expects inflation to rise this summer as a result of tariffs, meaning the Federal Reserve may keep interest rates unchanged until later in the year.

According to a Reuters poll, economists expect headline inflation to rise to 2.7% year-over-year, up from 2.4% the previous month, while core inflation is expected to rise to 3.0% from 2.8%.

James Kniveton, senior FX dealer at Convera, wrote in a client note: “If inflation fails to show or remains flat, questions may arise over the Fed’s recent decision not to cut rates, potentially intensifying calls for monetary easing.”

He added: “Calls from the White House to change Fed leadership may increase.”

Trump renewed his criticism of Powell on Monday, reiterating that interest rates should be at 1% or lower, instead of the current range of 4.25% to 4.50%.

In the futures markets, traders expect the Fed to lower interest rates by about 50 basis points by year-end, with the first cut — a quarter point — likely to come in September.

Elsewhere, currencies showed little reaction to China’s GDP data, which showed 5.2% growth in the last quarter, exceeding analysts’ expectations — a sign of some resilience in the face of US tariffs.

However, analysts warned of underlying weakness and rising risks later this year, which may prompt Beijing to expand stimulus programs.

The Chinese yuan dipped slightly to 7.1766 per dollar in offshore trading before recovering slightly to 7.175.

The British pound also rose by 0.2% to $1.1687, ahead of the annual Mansion House speech to be delivered today by Bank of England Governor Andrew Bailey to London’s financial sector, alongside UK Chancellor Rachel Reeves.