The Russia-Ukraine conflict currently underway threatens the political stability of the whole of Europe. The crisis sent gold prices in a tizzy Thursday. But, for palladium, a rare earth metal of humble value, it’s raining cash. The shiny metal, of which Russia is the biggest producer, saw its price rise to a six-month high recently, and the metal is currently trading at $2,472.81, according to Reuters. 

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Russia is the world’s third-largest gold producer after Australia and China, accounting for around 10% of global mining production, which totalled 3,500 tonnes last year, according to the World Gold Council.

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Nornickel, a Russian company, is a leading manufacturer of palladium and platinum, which are both used in catalytic converters to clean automotive exhaust fumes. Last year, Nornickel produced 2.6 million troy ounces of palladium, accounting for 40% of global mine production, and 641,000 ounces of platinum, accounting for nearly 10% of overall mine production.

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It’s a dramatic turn of events for palladium, which was the worst-performing major commodity in 2021. The impact of the semiconductor shortage on auto manufacturing dampened demand expectations, leading prices to fall in the second half of the year.

According to media estimates, only iron ore and silver have suffered significant losses as a result of China’s property market turmoil.

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Precious metals reversed a trend on February 24, with gold falling below the critical $1,900 per ounce mark and palladium falling more than 5% as US equities gained following the announcement of severe new sanctions against Russia by US President Joe Biden.

Gold prices on the Multi Commodity Exchange (MCX) decreased marginally on Friday, February 25, 2022. Gold futures were trading at Rs 50,960.00 per 10 gm, down 583 points or 1.13%, in the Indian market. Silver futures were trading at Rs 65,601.00 per kg, down 1,297 points or 1.94%.

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Copper futures were trading at Rs 767.15 down 0.11% while Nickel and Aluminium futures were trading at Rs 1,847.00 and Rs 269.40 per Kg respectively on MCX.

In global markets, gold was priced at $1,916.35 per oz. Platinum was trading at $1,065.50 while palladium was trading at $2,469.00. 

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In the spot market, the 22-carat gold was sold at Rs 51,280 per 10 grams while silver was priced at Rs 68,149 per kg on Thursday according to the Indian Bullion and Jewellers Association.