LONDON (Reuters) – Palladium prices plunged as much as 13 percent on Monday as COVID-19-related shutdowns in China hurt demand expectations for the metal, while looming increases in US interest rates snatched the spotlight from gold. At 17.35 GMT, the price of palladium in spot transactions was down 9.7 percent at $2,144.50 an ounce, after hitting its lowest level since March 29 at $2,068.82 earlier in the session. Commodity markets fell in general on growing fears that prolonged shutdowns in the Chinese city of Shanghai and possible increases in US interest rates will harm global growth and demand. Palladium, which is used in vehicle exhaust scrubbers to curb emissions, has fallen about 40 percent since hitting an all-time high in early March on concern that the war in Ukraine could reduce supply from Russia, a major producer of the metal. And gold fell in spot transactions 1.7 percent to $ 1896.80 an ounce, while US gold futures fell 1.9 percent to $ 1897.90. Gold was also affected by the rise of the dollar index to its highest level in two years, which makes the yellow metal more expensive for holders of other currencies. Platinum fell 1.5 percent to $915.99 an ounce, after touching its lowest level since December 2021, while silver fell 2.1 percent to $23.63.
#Palladium #plunges #fears #demand #damaged #China