(March 1st, 2022 – Reuters) – Palladium jumped on Tuesday on concerns that Western sanctions against Russia over its invasion of Ukraine would hit supply, with the conflict also driving up prices of safe-haven gold.
Used by automakers for catalytic converters to curb emissions, palladium rose nearly 4% to $2,586.66 per ounce by 1326 GMT. It hit its highest since July 2021 at $2,711.18 last week.
“We’re seeing the sanctions starting to bite,” disrupting shipments and driving palladium’s gains, Saxo Bank analyst Ole Hansen said. read more
Russia is the biggest producer of palladium, with Moscow-based Nornickel (GMKN.MM) accounting for 40% of the metal’s global mine production last year. read more
“Russian mining companies such as the world’s largest palladium producer are examining alternative transport routes. However, we believe that the sanctions and associated restrictions will make it difficult to charter planes to export materials,” Commerzbank analysts said in a note.
Spot gold rose 0.5% to $1,916.40 per ounce. U.S. gold futures rose 1.1% to $1,921.90.
Gold firmed despite a strong dollar as the market moved towards the safety of both, seeing as they are strong stores of value, said Carlo Alberto De Casa, external market analyst at Kinesis.
European stocks inched lower as ceasefire talks between Moscow and Kyiv failed to reach a breakthrough, while U.S. 10-year Treasury yields slid to five-week lows as investors snapped up safe-haven debt. read more
Gold, considered a safe store of value during political and financial uncertainty, rose 6.5% in February and hit an 18-month high of $1,973.96 last week.
“We believe gold may experience price volatility in either direction due to potential tactical positioning but investment demand is likely to be supported longer term by high inflation, geopolitics and overall market pullbacks,” said Juan Carlos Artigas, global head of research at the World Gold Council in a note.
Spot silver rose 0.9% to $24.63 per ounce while platinum rose 0.5% to $1,048.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com