Platinum prices advanced further Tuesday after surging oil prices boosted the precious metal’s appeal as a hedge against inflation. Overall weakness in the dollar, the recovery in equities and fresh optimism over the economic outlook sparked buying of commodities in earlier trade.
Platinum futures jumped for a fourth day in Tokyo amid speculation that carmakers and other industrial users were buying the metal to take advantage of the declining prices. Ralph Preston, a futures analyst at Heritage West Futures Inc. in San Diego, said: Platinum’s continuing to get support from industrial buyers. Click here for full story.
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.
Shares of Impala Platinum, world’s second-biggest platinum producer, surged in Johannesburg trading on speculation that BHP Bilton could make a bid to acquire the company. Garth Mackenzie, head of derivatives trading at BoE Stockbrokers in Johannesburg, said: Speculation in the market that BHP may be planning a bid for Impala is moving this stock. Click here [...]
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