Palladium sinks almost 17% on lower fears of shortages Russia supplies

The palladium plummeted to nearly 17% on Monday, in a sharp correction after hitting all-time highs due to the crisis in Ukraineas supply concerns eased from the largest producer, Russia.

Also, amid cautious hopes for progress in peace talks, gold lost almost 2%.

Palladium, a metal used to make catalysts to reduce emissions, sank 14.2% to $2,415.49 an ounce at 1801 GMT, facing its biggest daily percentage drop in at least two years. Earlier in the day it fell 16.8%.

Dim hopes for progress in Ukraine-Russia peace talks buoyed stock markets on Monday.

Platinum fell 3.6% to $1,040.29 an ounce.

The largest shareholder in Russian mining giant Nornickel told Russian broadcaster RBC that the group managed to secure alternative routes for its palladium deliveries despite logistical problems.

Meanwhile, spot gold fell 1.4% to $1,957.57 an ounce. US gold futures, meanwhile, closed down 1.2% at $1,960.80.

In addition, Silver gave up 2.7% at US$25.11 an ounce.

“There are some potentially positive developments on the front lines of the Russia-Ukraine war and that has buoyed equity markets and hurt metals markets,” Jim Wyckoff, senior analyst at Kitco Metals, wrote in a note.

Also pressuring non-yielding bullion was rising 10-year Treasury yields as the Federal Reserve is expected to raise interest rates this week.