Palladium prices surged on Tuesday as the Russia-Ukraine crisis fuelled supply worries, with the conflict also powering safe-haven gold back through the key $2,000 level.
Spot palladium jumped 5.9% to $3,173.02 per ounce by 09:16, resuming its rally after slipping from an all-time high of $3,440.76 to close marginally lower on Monday.
Platinum rose 2.2% to $1,147.31.
Prices of Palladium have skyrocketed this year to all-time highs as financial restrictions on Russia – the biggest producer of the auto-catalyst metal – for its invasion of Ukraine are expected to disrupt shipments and worsen a supply shortage.
“The ongoing crisis in Russia is causing a rally in the entire PGMs (platinum group metals) complex,” said Kunal Shah, head of research at Nirmal Bang Commodities.
Spot gold gained 1% to $2,014.40 per ounce, after climbing to $2,020.47 earlier in the day, its highest since August 2020.
U.S. gold futures were up 1.2% to $2,020.50. Spot silver advanced 1% to $25.92.
With gold‘s momentum, it seems inevitable that the metal will be testing record levels within a week or two, said Matt Simpson, a senior market analyst at City Index.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,062.7 tonnes on Monday – their highest since March 2021.
A break above $1,999 per ounce for spot gold could lead to a gain at $2,028, Reuters’ technical analyst Wang Tao said earlier in the session.