By Bharat Gautam
March 14 (Reuters) – Palladium slumped more than 10% on Monday, erasing most of the rally that led to record highs during the Ukraine crisis, as supply concerns eased.
* Also, amid cautious hopes for progress in peace talks, gold was down more than 1%.
* Palladium, a metal used to make catalysts and of which Russia is the largest producer, fell 9.3% to $2,555.46 per ounce by 1102 GMT, facing its biggest daily percentage drop in at least new months. Earlier in the day it fell 11.1%.
* Dim hopes for progress in Ukraine-Russia peace talks buoyed stock markets on Monday.
* “Palladium overreacted in the first place,” said Rhona O’Connell, an analyst at StoneX. “The climb we saw was built on straw, rather than concrete.” There was no clear supply disruption and very little industrial demand, she added.
* Platinum was down 3.7% at $1,039.85 an ounce, and spot gold was down 1.2% at $1,962.01, while U.S. gold futures were down 1%, at $1,964.
* Although there is a risk environment in the main markets, “I would not say that this (the recent rally) is the peak of gold yet, because the situation (in Ukraine) remains uncertain. It is very fluid,” said Carsten Menke, Julius Baer Analyst.
* Spot silver was down 2.3%, or about $25.20 a month.
(Edited in Spanish by Carlos Serrano)