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 is following the recent base metal trend, a round of selling, as fears about the health of the US economy were reignited by the Lehman Bankruptcy. Oil, base metals such as copper, European equities, and U.S. stock futures all slipped sharply on the news.
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.
Rival bidders like Impala Platinum are seeking ways to challenge Xstrata’s takeover bid for £5bn UK-listed Lonmin. A top institutional investor said: It seems clear that Lonmin will be sold – if not to Xstrata then somebody else. Click here for full story.
As per a report by Telegraph, Xstrata is planning to raise more than 5 billion pounds for its hostile $10 billion bid for Lonmin. For full news, click here
South Africa-focused platinum producer Lonmin reported on Thursday that it would vigorously contest $10 billion bid approach from Xstrata, but gave little indication on the strategies it plans to undertake in its defense. For full news, click here
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