Palladium declined to an almost two-week low in New York after Ukrainian President Petro Poroshenko said he agreed a cease-fire with Russian counterpart Vladimir Putin. Gold rose after reaching a two-month low.
The two leaders largely agreed on steps toward easing the conflict in Ukraine, Putin’s spokesman Dmitry Peskov said. A statement on Poroshenko’s website said an agreement had been reached on a “cease-fire regime.” Palladium climbed to a 13-year high of $913 an ounce this week as Russia, the top supplier of the metal, faced further sanctions.
The metal has advanced 22 percent this year as usage rose in catalytic converters, which curb harmful emissions in cars, and as a five-month mine strike that ended in June in South Africa, the second-biggest producer, reduced supplies. While Russia retaliated against previous sanctions by banning imports of some food products, there have been no metal-related restrictions yet. Putin didn’t endorse a permanent cease-fire as Russia isn’t a party to the fighting, Peskov said.
“This morning’s news flow just increases uncertainty,” Robin Bhar, an analyst at Societe Generale SA in London, said today by phone. News on an agreement should cause prices to decline, though the metal’s “fundamentals are robust” and this week’s drop may be a buying opportunity, he said.
Palladium for December delivery fell 0.7 percent to $877.50 an ounce by 7:45 a.m. on the New York Mercantile Exchange. It slid as much as 1.5 percent earlier today to $870.05, the lowest since Aug. 21. The metal for immediate delivery slid 0.6 percent to $876.63 in London, according to Bloomberg generic pricing.
via Bloomberg