Russia sanctions spook palladium investors as supply fears mount

Hedge funds just made an abrupt about face in the palladium market as US sanctions against Russian titans spark concerns that the world’s largest producer of the metal will get caught in the cross hairs. After the US slapped penalties on United Co. Rusal, American officials have sent conflicting signals about whether fresh sanctions will be imposed on other companies owned by oligarchs, such as Norilsk Nickel. The miner controls about 40% of the world’s palladium market. The turmoil sent prices for the metal to a seven-week high, and money managers increased their wagers on a rally by the most since June.