Platinum prices saw a sharp increase in mid-November after Johnson Matthey released a report forecasting a supply deficit of 400,000 ounces. However, the metal found itself under pressure with the announcement that Anglo American Platinum (OTC Pink:AGPPY) had resolved a long-running labor dispute. News that EU is in recession also served as a drag on the metal. Yet platinum was able to pull itself together, break $1,600 before month end and enter December above that level.
The market experienced some weakness during December’s first week of trading, but has since overcome the pressure and gotten on a positive track.
ETF investors have been adding to their holdings, which have hit an all-time high of 1.54 million ounces. The net speculative length of COMEX platinum has also been on the rise, with the two most recent Commitment of Traders reports showing additions of over 200,000 ounces.
This week, platinum has been a top performer among the precious metals, often up even when gold is down. On Monday, platinum was found trading at a seven-week high of $1,627. On Tuesday, the metal’s price rose to $1,642.
However, Standard Bank warned that the futures market is becoming overly stretched and considers significant moves above $1,650 unsustainable.
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