* Gold, silver jump to highest since late Feb<\/p>\n
* \u2018Lack of conviction\u2019 in ETF gold inflows- Commerzbank<\/p>\n
* Graphic: 2021 asset performance tmsnrt.rs\/2yaDPgn (Recasts, adds comments, updates prices)<\/p>\n
May 4 (Reuters) – Palladium prices soared to all-time highs on Tuesday, fuelled by worries over short supplies of the auto-catalyst metal as demand gradually improves, while gold prices rose to their highest level in more than two months.<\/p>\n
Spot palladium gained 0.4% to $2,983.83 per ounce at 10:59 a.m. EDT (1459 GMT), after jumping to a record of $3,017.18.<\/p>\n
\u201cThere are stricter pollution controls globally that we have not seen in the past, which means vehicles that were not previously required to use auto-catalysts will now have to, and hence more demand,\u201d said Bart Melek, head of commodity strategies at TD Securities.<\/p>\n
\u201cWe are in a situation where for the foreseeable future the market will be in physical deficit and prices will go higher,\u201d he added.<\/p>\n
Following years of deficit, concerns about supply shortages were exacerbated after top producer Nornickel announced disruptions at two mines due to flooding.<\/p>\n
Spot gold, meanwhile, was 0.1% higher at $1,794.01 per ounce, having hit its highest since Feb. 25 at $1,798.65 as tumbling U.S. Treasury yields offered support.<\/p>\n
\u201cGold prices are not breaking despite a stronger dollar that stemmed from investors turning cautious on stocks,\u201d said Edward Moya, senior market analyst at OANDA.<\/p>\n
Gold is slowly turning bullish; it just needs to break above some key technical levels before Wall Street will become believers again, he wrote in a note.<\/p>\n
Gains in bullion were limited as the dollar index rose 0.4%, with investors weighing chances that U.S. interest rates will be forced higher by a roaring U.S. economic recovery, reducing bullion\u2019s allure for other currency holders.<\/p>\n
There is still a lack of conviction for ETF inflows at the moment, Commerzbank analysts said, adding if gold were to succeed in breaking above the $1,800 mark, this could result in ETF buying.<\/p>\n
Silver was flat at $26.87, after hitting its highest since Feb. 26, while platinum rose 1.4% to $1,247.50.<\/p>\n