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Palladium shot up to an all-time high as Russia's invasion of Ukraine and resultant sanctions stoked fear of scarcity, while gold tested the psychological $2,000 mark in response to demand for safe-haven assets.

Spot palladium soared 11.8% to $3,357.68 per ounce, by 1058 GMT, on course for its biggest daily percentage rise since March 2020, after hitting an all-time high of $3,440.76 earlier.

"Palladium is reflecting deep scarcity, and anticipation of further scarcity as things unfold in Ukraine and Russia," independent analyst Ross Norman said, adding he expected the price rally to continue.

Western nations have piled sanctions on Moscow, driving prices higher across a range of commodities. Russia accounts for 40% of global production of palladium, used by automakers in catalytic converters to curb emissions.

"Possible supply outages from Russia are still being priced in on the palladium market," Commerzbank analysts said in a note. "As supply outages could not be offset elsewhere, the market risks sliding into a sizeable supply deficit."

Spot gold gained 1.6% to $2,000.40 per ounce, after scaling its highest since Aug. 19, 2020, at $2,002.31 earlier in the session. U.S. gold futures rose 2% to $2,004.90.

The surge in the gold price reflects increased risk aversion among market participants, and given the crisis in Ukraine, investors are likely to continue to seek refuge in gold, Commerzbank said. [MKTS/GLOB]

Gold is considered one of the oldest safe-haven assets. It rose despite strong inflows into the U.S. dollar, which makes gold more expensive for holders of other currency. The dollar is also considered a reliable store of value during times of uncertainty. [USD/]

"In the current environment, I would expect $2,000 to represent little more than a speed bump," Norman said.

Spot silver advanced 1.3% to $25.99 per ounce, while platinum was up 3% to $1,154.44.