Palladium Jumps After London Hub Suspends Trading from Russia

PALADIUM - LONDON. Palladium prices hit a more than two-week high on Monday on supply concerns following a recent suspension on trading of the metal sourced from Russia in the London hub, while gold was boosted by inflation fears.

Palladium rose nearly 2% to $2,473.40 per ounce by 11:11 a.m. ET (1511 GMT), having earlier jumped 5% to hit a peak since March 24 at $2,550.58. Platinum rose 0.6% to $980.42.

Newly refined Russian platinum and palladium was suspended from trading in London from Friday, denying access to the metals' biggest trade hub because of the conflict in Ukraine.

"We believe that the underlying fundamental support of concerns about supply disruptions remains the main focal point of the market," said David Meger, director of metals trading at High Ridge Futures.

Palladium, used in car exhausts as an autocatalyst to filter emissions, surged to an all-time high of $3,440.76 on March 7 driven by concerns over supply from top producer Russia.

Spot gold gained 0.4% to $1,952.58 per ounce, after hitting its highest since March 14 at $1968.91. U.S. gold futures rose 0.5% to $1,955.90. This, despite U.S. 10-year Treasury yields rising to their highest since January 2019.

Rising rates increase the opportunity cost of holding non-yielding bullion. "The war is continuing and without a clear solution and it's becoming evident it's becoming a long-term matter," said Carlo Alberto De Casa, an external market analyst at Kinesis, adding the March U.S. consumer price report could be an important catalyst for gold, considered an inflation hedge.

Due on Tuesday, traders expect further rises in the consumer report due to the impact of the war on energy costs. Russian troops were said to be massing for a new offensive in the east, with Moscow saying it would not halt for any further peace talks. Spot silver rose 0.8% to $24.96 per ounce.

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