Platinum Group Metals Accelerate On Technical Momentum

New York (July 1)  Platinum group metals are sharply higher, accelerating on  technically oriented buying, traders say. One North American dealer said the PGMs have drawn spillover buying from the recent upswing in gold, with fuel for the rally also coming from a weaker U.S. dollar. “There was definitely some technical momentum,” he continues. “The $1,496 level – as soon as (platinum) went through that, it went through the roof,” he says. October platinum had peaked at $1,496.80 in May, and with buy stops hit on the break of this and the pyschological $1,500 area, the market Tuesday ran as high as $1,516.70 an ounce. The contract settled after the Nymex pit session with a gain of $32.10 to $1,515 an ounce.

September palladium added $11.45 to $854.60. Analysts have been citing favorable supply/demand for PGMs lately due to supply constraints and favorable demand. One observer notes that news on the demand front remained supportive, as U.S. auto manufacturers reported continuing strong car sales for June.

Source: Kitco