Markets are unsettled as Russia imposes sanctions, causing palladium and gold prices to rise.

On Monday, palladium prices increased due to concerns about supply disruptions resulting from the West imposing additional sanctions on Russia for its invasion of Ukraine. As a result, gold, which is considered a safe haven, was on track to achieve its largest monthly percentage increase in nearly a decade.

Palladium increased by 5.1% to $2,488.20, reaching a session high of $2,551.50. It was poised to achieve its third consecutive monthly increase.

Palladium, utilized by automakers for catalytic converters, is supplied by Nornickel, Russia's largest provider.

Eric Scoles, market strategist at Blue Line Futures, stated that the increase in sanctions on Russia and the resulting tension create a scarcity threat for platinum metal groups.

If the U.S. stops doing business with major palladium producers, the supply deficit could increase, according to Scoles.

The price of spot gold increased by 1.4% to $1,914 per ounce, after reaching a high of 2.2% earlier in the session. Meanwhile, U.S. gold futures rose by 1.6% to $1,917.10.

In February, gold, which is commonly used as a secure store of value during uncertain times, experienced a 6.5% increase, reaching an 18-month high of $1,973.96 last week.

According to Jim Wyckoff, senior analyst at Kitco Metals, gold is the primary safe haven asset that outperforms crypto currencies and other assets, including Treasuries, when geopolitical tensions increase.

New sanctions against Russia caused financial markets to decline and oil prices to rise as Western allies increased their efforts to punish Russia.

Russia's central bank took steps to protect the economy on Monday as its conflict with Ukraine persisted, and it also pledged to resume purchasing gold in the domestic market.

Both spot silver and platinum experienced slight increases, with silver gaining 1% at $24.44 and platinum rising 0.1% to $1,054.87, both set to achieve monthly gains.