On Tuesday, Gold extended its most significant weekly advance since July 2020 as the United States eyed a potential ban on Russian oil.
Futures tied to the yellow metal were steady at $2,009.00 per ounce. They increased 0.70% or 14.20 points in the current trading session.
At the same time, spot gold edged up 0.39% or 7.55 points to $2,005.56.
Earlier, bullion eased back after the German government said it was against entering the following sanctions spiral. This statement signaled disunity in the prospected oil ban.
Nevertheless, the US still considered a deterrent, acting without help from its allies in Europe.
The possibility of an embargo on Russian oil sparked fears about higher inflation and slower economic growth.
In line with this, traders turned again to Gold, considered a safe store of value during such uncertainties. It is also a hedge against mounting inflation.
Meanwhile, talks between Russia and Ukraine to halt the conflict have made only a little progress.
Russian negotiators said they did not have any positive developments to report following the meetings. The country even warned that a ceasefire might not be possible in the next round.
Correspondingly, analysts explained that any war escalation would be bullish for the precious metal.
The European Central Bank will release its policy decision on Thursday on the central bank front.
Furthermore, the March 15-16 meeting of the Federal Reserve will decide the first pandemic-era rate hike.
Markets kept an eye close to the release of the US consumer price index on Thursday. Economists anticipated the CPI to increase by 7.9% year-over-year in February.
The forecasted figure strengthened from the previous record of 7.50% YoY in January, the highest in 40 years.
Gold, Palladium Prices Soar
Like Gold, spot palladium strengthened 2.48%, or 75.26 points, to $3,072.43. It is now on track for its biggest daily percentage rise since March 2020.
In early trading, it touched an all-time high of $3,440.76. Then, futures tied to the metal also surged 4.85% or 140.62 points, to $3,042.52 per troy ounce.
Western nations have slapped punitive actions on Moscow, pushing prices higher across commodities.
Subsequently, Russia accounts for 40.00% of the worldwide production of palladium. Automakers used the metal in catalytic converters to curb emissions.
In the stated case, the possible supply outages from the country will continue to push high prices in the palladium market.
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