Gold Price Rises, Palladium Soars as Russia Sanctions Threaten Supplies

Palladium rose on Tuesday on concerns that Western sanctions against Russia over its invasion of Ukraine will hit supplies, in a conflict that is also driving up palladium prices. gold for its appeal as a safe haven.

Used by automakers for catalytic converters that curb emissions, palladium was up 3.6% at $2,577.38 at 10:43 GMT. Last week, the metal hit its highest level since July 2021 at $2,711.18.

“We are seeing that the sanctions begin to affect”, disrupting shipments and boosting palladium gains, Saxo Bank analyst Ole Hansen said.

Russia is the largest producer of palladium, and Moscow-based Nornickel last year accounted for 40% of the world’s mining output of the metal.

“Russian mining companies, as the world’s largest palladium producer, are examining alternative transportation routes. However, we believe that the sanctions and associated restrictions will make it difficult to charter aircraft to export materials.”, analysts at Commerzbank said in a note.

Spot gold was up 0.7% at $1,921.90 an ounce, while US gold futures were up 1.2% at $1,923.30.

European stocks fell slightly on jitters over the Ukraine crisis after ceasefire talks between Moscow and Kiev failed to make a breakthrough.

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.

Among other precious metals, silver added 0.8% to $24.62 an ounce and platinum gained 1.2% to $1,055.50.

With information from Reuters