“Gold bulls have shown little hesitation in catapulting prices higher on signs that the Ukraine crisis could drastically worsen the global economic outlook.said Han Tan, chief market analyst at Exinity.
The foreign ministers of Russia and Ukraine met Thursday in Turkey, the highest-level contact between the two countries since the war began on February 24, but at simultaneous news conferences they made it clear that they had not achieved any progress.
A run for haven assets earlier this week due to the Ukraine crisis pushed gold prices to near-record levels reached in August 2020. In other precious metals, palladium, used by automakers in catalytic converters to reduce emissions, it fell 0.4% to $2,926.54 per ounce. The metal hit an all-time high of $3,440.76 on Monday, fueled by fears of supply disruptions from top producer Russia. Spot silver rose 0.3% to $25.80 an ounce, while platinum added 1.1% to $1,087.32 an ounce.
Aluminum, meanwhile, rose almost 5% this Thursday, recovering from losses in the previous session amid increasing price volatility. Benchmark aluminum on the London Metal Exchange (LME) rose 4.7% to $3,498.50 a tonne. Used in transportation, construction and packaging, aluminum prices soared 20% following Russia’s attack on Ukraine on February 24, hitting an all-time high of $4,075.50 on Monday, before falling $3,300 on Wednesday.
“It is premature to talk about a change in trend,” said Daniel Briesemann, an analyst at Commerzbank. “In our opinion, the risks are still immense.”
The LME does not expect to resume nickel trading before Friday, having halted trading on Tuesday when a selling shock sent prices soaring above $100,000 a tonne.
Source: Ambito
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