LONDON (Bullion Street): Precious metals are expected to post gains on further deterioration of the Ukraine crisis. Spot gold jumped more than one per cent and stood at USD 1,343.70 an ounce in early European trade and silver was bid higher at USD 21.46 an ounce. 

Precious metals have done well so far benefiting from US growth concerns and emerging market jitters, silver acting increasingly like a leveraged play on gold. 

Platinum and Palladium prices rose on growing supply-demand imbalances as South Africa labour strife continues. 
 
"With Russia rattling its sabre in the Ukraine, macro imbalances in some key emerging market economies still unresolved and continued uncertainty about the strength of US, Europe and Japan recoveries, demand for perceived safe havens such as gold should remain strong in our view."


Silver shot up also due to consistent demand from jewellery as well as coin makers in the world.