Palladium and Gold Prices Soar Amid Russia-Ukraine Crisis
In the midst of the escalating Russia-Ukraine crisis, the prices of palladium and gold have surged to record highs, reflecting the growing concerns of a supply shortage and economic instability.
Spot palladium, the precious metal used in catalytic converters for cars, reached an all-time peak of $3,440.76 on Monday before settling at $3,037.76 per ounce on Tuesday. The volatile trading saw palladium swing between gains of 7.5% and losses of 3.4%, as the financial restrictions on Russia – the largest producer of palladium – threatened to disrupt shipments.
Meanwhile, the safe-haven gold also experienced a significant increase, breaking the key $2,000 level to reach $2,020.80 per ounce, its highest since August 2020. Analysts predict that gold, traditionally considered a store of value during global crises, could make another run towards its all-time high of $2,072.50 if the situation deteriorates further.
The uncertainty in global markets has prompted investors to turn to precious metals like gold and silver as a hedge against inflation and economic recession. With central banks struggling to combat rising inflation due to soaring oil prices, gold is seen as the ultimate antidote to stagflation – a scenario of economic stagnation coupled with high inflation.
As the crisis unfolds, the future of precious metals remains uncertain, with market analysts closely monitoring the developments and their impact on the prices of palladium and gold. Stay tuned for more updates on this evolving situation.
