Palladium Reaches 13-Year High Over $900 oz as Gold Trading Volumes Surge 66%
GoldCore
GoldSeek.com
Monday, 18 August 2014
Palladium, mostly used in catalytic converters in cars alongside platinum and in jewellery, has advanced 25% so far this year on concerns about Russian supplies and as supply was cut by a mine strike that ended in June in South Africa, the second-biggest producer. Tension over Ukraine led to the U.S. and European Union slapping sanctions on Russia, the top supplier.
There have been no sanctions on palladium, which is heading for a third annual supply shortfall. Indeed, there is a risk that sanctions could lead Putin to use palladium as he has done in natural gas and secure higher prices for Russian exports.
Russia’s Foreign Minister Sergei Lavrov said talks on the conflict in Ukraine haven’t produced a resolution, with the only progress made being on the passage of humanitarian aid. He expects truckloads of Russian aid for the Luhansk region to be delivered soon.
Geopolitical risk remains high both in Ukraine and in Iraq. Escalating tensions between Russia and Ukraine are on the verge of spilling over into open conflict. Ukraine has accused Moscow of pushing more military equipment over the border including three missile systems.
Rebel separatists yesterday shot down a Ukrainian Mig-29 fighter jet, although the pilot managed to eject safely.
Moscow continues to deny sending military equipment or personnel into Ukrainian territory, but large convoys have been seen massing on the Russian side of the border.
Meanwhile some 16 lorries from a 280-strong Russian convoy carrying humanitarian aid for eastern Ukraine arrived at a rebel held border crossing yesterday. Kiev insists any aid should cross a government-controlled part of the border.
The U.S. widened its air campaign against Sunni separatists in Iraq, sending bombers for the first time in support of a Kurdish ground offensive to retake the Mosul Dam and promising to keep up strikes until the strategic post is out of the hands of Islamic State fighters.
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