Platinum Price Jumps the Most in Almost Two Years as Gold Recovers
San Francisco (Aug 10) Platinum rose the most in almost two years on budding optimism that this year’s price slide will encourage more demand from carmakers and jewelers. Gold prices also rose.
Jaguar Land Rover expects increasing car sales in Europe to help the company meet its target for record annual sales. Europe accounts for about 25 percent of global use of the metal, used in pollution-control devices in automobiles. In China, platinum imports in June climbed 43 percent from May, snapping two months of declines, customs data show.
Prices have slumped 18 percent this year. As the Federal Reserve prepares to raise interest rates, investors have snubbed precious metals because they don’t pay interest. Platinum traded above its 15-day moving average on Monday for the first time in about a month.
“The market is showing major oversold signs and some pretty substantial responsive demand for platinum,” Mike McGlone, the New York-based director of research at ETF Securities LLC, said in a telephone interview. “The European vehicle sales lately have been good, and, also, the platinum imports into China are quite good.”
Platinum futures for October delivery climbed 2.9 percent to settle at $989.80 an ounce at 1:08 p.m.. on the New York Mercantile Exchange, the biggest gain since September 19, 2013.
Prices touched $945.40 last week, the lowest since 2009. Money managers cut their net-long positions on platinum by 8.5 percent to 6,382 contracts in futures and options last week, U.S. government data show. On July 21, the holding was 6,262 contracts, the smallest since 2012.
Gold futures for December delivery gained 0.9 percent to $1,104.10 an ounce on the Comex in New York. Prices rose for a third session, the longest streak since June.
The biggest union in South Africa’s gold industry rejected a pay-increase proposal by the country’s largest producers, a lobby group for the companies said.
Silver futures for September delivery rose 3.2 percent to $15.292 an ounce on the Comex. On the Nymex, palladium for September delivery increased 1.6 percent to $606.20 an ounce.