Precious metals jumped, with palladium and gold leading the chargePrecious metals jumped on Tuesday, with palladium and gold leading the charge, as traders remain squarely focused on the Ukraine crisis after Western countries had slapped Russia with the harsh sanctions.Supply concerns from the enhanced sanctions on Russia pushed up prices of palladium, which are used by automakers for catalytic converters to curb emissions.Palladium rose over 3.5%, while the sense that the war and higher energy prices could slow the interconnected global economy helped gold.A Russian based firm accounts for about 40 per cent of palladium’s global mine production, as per data from last year and that has weighed on supply concerns.”We’re seeing the sanctions starting to bite,” disrupting shipments and driving palladium’s gains, Saxo Bank analyst Ole Hansen told Reuters. “Russian mining companies such as the world’s largest palladium producer are examining alternative transport routes. However, we believe that the sanctions and associated restrictions will make it difficult to charter planes to export materials,” noted, analysts at Commerzbank, in a note to clients.The escalating tension between Russia and Ukraine has helped gold prices, with U.S. gold futures up over 1 per cent.The sanctions are likely to spur the Bank of Russia to buy gold again. Bank of Russia announced that it will start buying gold again, nearly two years after it had ended a long run of purchases.Additionally, gold will also get a boost from higher inflation trade as the yellow metal is usually considered as a hedge against inflation, and in times of an economic or political turmoil.
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