“The combination of rising energy prices, grain prices, base metal prices culminates in dramatic inflationary pressures that continue to be the main underlying support behind gold’s upward moves”said David Meger, director of metals trading at High Ridge Futures, adding: “In addition, we are seeing a significant amount of safe-haven bids in the gold market as equity markets have come under pressure due to heightened concerns. on the geopolitical front.
What has happened in recent weeks is that the increase in oil prices and the war in Ukraine reduced the appetite for riskier assets in recent weeks. Bullion is up more than 12% this year as it is seen as a safe store of value in times of geopolitical uncertainty and rising inflation.
This Tuesday, US President Joe Biden announced a ban on imports of Russian oil and other energy sources, while Britain said it will phase out imports of Russian oil and oil products by 2022.
Meanwhile, concerns about a palladium supply shortfall due to sanctions imposed on Russia, the main producer of the metal used in automobile catalysts, kept its price close to all-time highs. Palladium rose 6.7% to $3,199.18 an ounce, after hitting an all-time high of $3,440.76 on Monday. It soared more than 60% this year.
Spot silver rose 3.1% to $26.45 an ounce after hitting its highest level since mid-June 2021. Platinum gained 2.9% to $1,155.52.
Source: Ambito
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