By Bharat Gautam

(Reuters.) – On Wednesday, gold and palladium halted a blistering rally. This was as more risky assets attempted a comeback. Experts predict a higher price for precious metals in response to a possible escalation of the Ukraine crisis.

The ounce fell 1.9%, to $2,013.79 as of 1047 GMT. It snapped a four-session rally which brought it back within striking distance of August 2020’s all-time high. U.S. declined 1.1%, to $2.021.20.

Craig Erlam (OANDA senior market analyst) stated that “what we might be seeing right now is just one correction after such an enormous move over a long period of time in gold and palladium.”

Following a recent rally triggered by Western sanctions against Russia over its invasion of Ukraine, investors picked up stocks that were in decline. ()

The strength of the prices has fueled fears of inflation, and gold’s attraction as an investment hedge against rising costs, has also been affected. [O/R]

At these levels, strong resistance to gold prices is possible. A pullback to $1,930 or less can be anticipated, along with consolidation between $1.930 and $1,075, according Michael McCarthy, Chief Strategy Officer at Tiger Brokers Australia.

McCarthy said that “if geopolitical instability continues, it is very likely we’ll seek new all-time highs for precious metals,” McCarthy stated.

The metal used in automakers’ catalytic converters for reducing emissions was Palladium. It fell 3.7%, to $3,063.19 an troy ounce, after reaching a record of $3,440.76 on Monday. That high result was driven by concerns about supply disruptions from Russia.

According to Bernard Dahdah, a Natixis analyst, volatility in precious metals is normal because commodities don’t follow fundamentals and industrial demand.

After reaching a nine-month peak on Tuesday, silver spot dropped by 1% at $26.13 per an ounce. Platinum fell 3.5%, to $1.113.43.