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Spot palladium, used by automakers in catalytic converters to
curb emissions, jumped 4.1% to $2,778.48 by 1030 GMT, rising for
a fourth session to hit its highest since mid-June 2021.
"The airspace closure is disrupting exports from Russia," with
buying from both investors and consumers supporting palladium
prices, UBS analyst Giovanni Staunovo said.
Western nations have piled sanctions on Russia for its invasion
of Ukraine, which accounts for 40% of global palladium
production.
"The market is in 'self sanction mode' trying to avoid anything
relating to Russian oil, Russian palladium, Russian whatever,"
said Bernard Dahdah, an analyst at Natixis.
Oil prices soared again, rattling markets, as the Ukraine war
triggered a dash for commodities that could be in short supply.
[MKTS/GLOB]
Spot gold rose 0.4% to $1,933.14 per ounce. U.S. gold futures
gained 0.6% to $1,933.20.
"It's less likely that the Fed is going to raise rates by 0.5
basis points," so that has given an extra boost to gold prices,
along with demand due to the crisis in Ukraine, Natixis' Dahdah
said.
Federal Reserve Chair Jerome Powell said on Wednesday the
central bank would begin "carefully" raising interest rates at
its upcoming March meeting but be ready to move more
aggressively if inflation does not cool as quickly as expected.
Although gold is considered a safe investment during political
and economic uncertainty, rising U.S. interest rates increases
the opportunity cost of holding non-interest bearing bullion.
However, strength in rival safe-haven the U.S. dollar limited
gains in greenback-priced bullion. [USD/] [US/]
Spot silver rose 0.4% to $25.36 per ounce, while platinum gained
1.7% to $1,088.93.
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Aditya Soni)
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