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Spot palladium soared 11.8% to $3,357.68 per ounce, by 1058 GMT,
on course for its biggest daily percentage rise since March
2020, after hitting an all-time high of $3,440.76 earlier.
"Palladium is reflecting deep scarcity, and anticipation of
further scarcity as things unfold in Ukraine and Russia,"
independent analyst Ross Norman said, adding he expected the
price rally to continue.
Western nations have piled sanctions on Moscow, driving prices
higher across a range of commodities. Russia accounts for 40% of
global production of palladium, used by automakers in catalytic
converters to curb emissions.
"Possible supply outages from Russia are still being priced in
on the palladium market," Commerzbank analysts said in a note.
"As supply outages could not be offset elsewhere, the market
risks sliding into a sizeable supply deficit."
Spot gold gained 1.6% to $2,000.40 per ounce, after scaling its
highest since Aug. 19, 2020, at $2,002.31 earlier in the
session. U.S. gold futures rose 2% to $2,004.90.
The surge in the gold price reflects increased risk aversion
among market participants, and given the crisis in Ukraine,
investors are likely to continue to seek refuge in gold,
Commerzbank said. [MKTS/GLOB]
Gold is considered one of the oldest safe-haven assets. It rose
despite strong inflows into the U.S. dollar, which makes gold
more expensive for holders of other currency. The dollar is also
considered a reliable store of value during times of
uncertainty. [USD/]
"In the current environment, I would expect $2,000 to represent
little more than a speed bump," Norman said.
Spot silver advanced 1.3% to $25.99 per ounce, while platinum
was up 3% to $1,154.44.
(Reporting by Bharat Govind Gautam in Bengaluru; editing by
Barbara Lewis)
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