Palladium jumps 11pc after London blocks sale from Russian refineries

NEW YORK: Palladium rose 11% on Friday on renewed supply concerns after a market authority said it would block Russian refineries from selling the metal in London due to the Ukraine crisis.

Palladium, used by automakers in catalytic converters to curb emissions, hit its highest since March 25 at $2,480.42 an ounce following the announcement by the London Platinum and Palladium Market (LPPM), a trade association that accredits refineries.

“Ultimately, the market is worried that we’re going to have an even more scarce market than before… we still think that it could move higher,” said Bart Melek, head of commodity strategies at TD Securities.

Palladium rose 9.5% to $2,445.70 at 11:34 a.m. ET (1534 GMT), en route to its first weekly gain in five. The metal surged to an all-time high of $3,440.76 on March 7 on concerns over supply from top producer Russia.

Spot gold rose 0.7% to $1,944.98 per ounce and was up 1.1% for the week, while US gold futures were up 0.6% at $1,949.30.

Gold’s rise came despite solid gains in the US dollar, a rival safe-haven asset.

The uncertainty over what the Federal Reserve is going to do after raising rates is leading to flows into gold, said Edward Moya, senior market analyst at OANDA.