The metal gained 3.7% to $2,069.20 an ounce, its highest level since August 2020.
Gold remains a low-volatility safe-haven asset, said Ole Hansen, an analyst at Saxo bank. “We are going to face a period of extremely high inflation where central banks will struggle to defend themselves due to other constraints. And that will continue to attract investors to the gold market.”he explained.
Analysts have said that gold, considered a store of value during global crises, could start another bullish streak until reaching the historical maximum of 2,121.70 dollars -of August 6, 2020-, amid concerns about soaring inflation and high oil prices.
While, Silver was up 6.3% at $27.32 an ounce.
For its part, palladium headed towards its historical level, due to concerns about a low supply of the metal. Spot palladium rose 4.7% to $3,035 an ounce. The metal was trading between gains of 7.5% and a loss of around 3.4%, after climbing to a record high of $3,440.76 on Monday. Platinum prices added 6.2% to $1,185 an ounce.
Markets expect financial restrictions imposed on Russia – the biggest producer of the metal used in auto catalysts – for invading Ukraine to disrupt shipments and worsen supply shortages.
“The initial cost of palladium to produce a car is relatively small” and, in the event of a shortage, automakers would be willing to pay almost any price for the metal and maintain production, Hansen said.
Source: Ambito
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