Early April, we reported that HSBC’s James Steel and his team were bullish on palladium prices where global supply is constrained. Steel was expected palladium average prices to reach $825/oz in 2014. This limit was reached last Wednesday and again today.

Tensions in Eastern Europe continue to garner attention in the commodities space. While safe-haven demand has likely helped support gold and silver prices, concerns over supply constraints on Russian exports may help explain platinum and palladium’s push higher. Russian production of palladium accounts for roughly 44% of global supply, and the possibility of sanctions by the West on the country’s exports may underlie the metals’ recent run towards its 2014 high.