(Updates prices)
    * Palladium up for fourth straight session
    * Powell's Congress testimony in focus
    * U.S. weekly jobless claims fall for second straight week

    By Brijesh Patel
    March 3 (Reuters) - Palladium extended gains to a more than
seven-month high on Thursday, spurred by concerns over supply
shortages following harsh sanctions on top-producer Russia,
while the Ukraine crisis and soaring inflation lifted demand for
safe-haven gold.
    Spot prices of palladium       , used by automakers in
catalytic converters to curb emissions, rose 4.1% to $2,779.09
by 01:39 p.m. ET (1839 GMT), its highest level since mid-July
2021.
    "Palladium is the one commodity from Russia that accounts
for a sizable amount of exposure to the country, so it is in the
sweet spot in terms of its impact," ED&F Man Capital Markets
analyst Edward Meir said.
    Western nations have piled sanctions on Russia for its
invasion of Ukraine, which accounts for 40% of global palladium
production.             
    Spot gold        was up 0.4% at $1,933.31 per ounce and U.S.
gold futures        settled 0.7% higher to $1,935.90.
    "Gold has largely been trading at the mercy of
Ukraine-Russia headlines, but has also started to rekindle its
relationship with real yields ahead of the March FOMC meeting,"
Standard Chartered analyst Suki Cooper wrote in a note.
    "Rate hike expectations have been scaled back and we
continue to expect the Fed to hike by 25bps in March. Along with
a flight to safety, the conflict has implications for the
physical market as Russia restarts central bank gold purchases."
    Investors are looking out for more clues on U.S. interest
rate hikes as Fed Chair Jerome Powell's Congress testimony
enters the second day.             
    Although gold is considered a safe investment during
political and economic uncertainty, rising U.S. interest rates
increase the opportunity cost of holding non-interest bearing
bullion.
    Meanwhile, data showed the number of Americans filing new
claims for unemployment benefits fell more than expected last
week.             
    Spot silver        slipped 0.5% to $25.12 per ounce, while
platinum        rose 0.6% to $1,077.76. 

 (Reporting by Brijesh Patel in Bengaluru; Editing by Krishna
Chandra Eluri and Amy Caren Daniel)