Platinum gained in New York on speculation that demand for the metal may increase as housing starts in the U.S. unexpectedly surged in February and U.S. producer prices rose. Palladium fell. Work began on 583,000 U.S. homes, on an annual basis, up 22 percent from January, the biggest jump since 1990, as multi-unit building surged, the Commerce Department said today. The Labor Department said U.S. producer prices, an inflation gauge, climbed 0.1 percent last month. Some investors buy platinum to hedge against rising prices. “The slightly improved U.S. data this morning should hold platinum-group metals at these levels,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in an e-mailed comment. “Traders will possibly try the upside with positive news but the fundamentals have not changed and more are skeptical.” Platinum futures for April delivery climbed $1.40, or 0.1 percent, to $1,050.80 an ounce at 10:23 a.m. on the New York Mercantile Exchange. The price fell 1.4 percent last week. Palladium futures for June delivery plunged $3.90, or 2 percent, to $196.35 an ounce in New York. The most-active contract fell 2 percent last week.

Source