Wall St. woes hit platinum
Platinum has been on a steady downgrade, falling since trading at a record $2,301.50 an ounce in March. A poor economic outlook eroding demand for jewelry and cars is responsible for the metal's flop.
Platinum has been on a steady downgrade, falling since trading at a record $2,301.50 an ounce in March. A poor economic outlook eroding demand for jewelry and cars is responsible for the metal's flop.
A firmer yen against the U.S. dollar spurred buying in platinum ahead of the release of a supply and demand report by refiner Johnson Matthey. For full story, click here
Platinum prices will move downward for the rest of 2008 toward $700/oz as industrial demand continues to slump, bringing the annual average to $1,550—which still is higher than the $1,300 average of 2007. For full story, click here
Platinum was up on Monday, reversing some of last weeks huge losses. The metal used in the auto industry continued its rise on Tuesday, but later in the day experienced losses. Platinum’s rise from its 3 1/2 year low came as crude oil prices advanced, encouraging investors to buy commodities including precious metals.
Platinum started the week off on a good note, prices rose more than 3 percent as the greenback weakened and a renewed optimism on platinum’s future market returned to analysts.
In Tokyo, Spot platinum fell more than three percent on Monday on renewed concerns about demand for the metal. The cash price stood at $1,421.50/$1,441.50 per ounce, compared to late New York levels of $1,474.50/1,494.50.
Platinum prices slipped on Monday as the U.S. dollar resumed its rebound against the euro and the pound. Platinum is often used by investors as a hedge against a weakening dollar, so the dollar's recovery has made the metals less attractive.
Platinum declined more than 6 percent on Tuesday to its lowest since mid-September last year, due to weakening demand from automakers and general weakness in precious metals. Kazuhiko Saito of Interes Capital Management in Tokyo said: EU automobile production decreases. Both gold and platinum continue to be bearish. Platinum may be fall to below $1,200. [...]
Platinum extended losses due to demand related worries. For full story, click here
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