BLBG:Platinum Rallies to Four-Month High on Demand as Gold Climbs
Platinum rallied to the highest price in almost four months on prospects for increased demand as the global economy improves while gold advanced. Palladium climbed to the most expensive since September 2011.
Platinum for immediate delivery increased as much as 1.4 percent to $1,707.87 an ounce, the highest price since Oct. 9, and traded at $1,705.87 at 1:26 p.m. in Singapore. Gold for immediate delivery rose 0.2 percent to $1,671.50 an ounce.
Platinum and related metals may have so-called price spikes this year and next on growing demand and a lack of investment in mines, JPMorgan Chase & Co., said on Jan. 31. The U.S. added 157,000 jobs in January and there were more hirings in the previous two months than reported earlier, data showed Feb. 1. Platinum, used in auto catalysts, has surged 11 percent this year as exchange-traded products backed by the metal climbed to a record last month, compared with gold’s 0.2 percent decline.
“Platinum prices have been supported by the expectation that supply is going to be tight as output declines,” said Chae Un Soo, a trader at Seoul-based Korea Exchange Bank Futures. “Coupled with that outlook, increased liquidity in the financial market is helping boost platinum prices along with other commodities.”
Commodities as tracked by the Standard & Poor’s GSCI Index gained for an eighth week last week, the best run since 1996 on speculation that global growth is picking up. Base metals rallied in London today together with grains in Chicago.
Gold for April delivery was little changed at $1,672.10 an ounce on the Comex. Cash bullion of 99.99 percent purity gained 0.5 percent to 336.67 yuan a gram ($1,681 an ounce) on the Shanghai Gold Exchange.
Spot palladium advanced as much as 0.8 percent to $762.25 an ounce, the highest since September 2011, and traded at $761.75. Silver for immediate delivery was little changed at $31.8288 an ounce.
To contact the reporters on this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net; Sungwoo Park in Seoul at spark47@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
