The Conversation (0)
A brief overview of platinum price developments, supply and demand and significant market movers.
The level of enthusiasm seen in the platinum market in the first half of February has yet to return. Platinum prices have been declining and the metal has lost its premium over gold.
In February, the metal traded as high as $1,741 in London. Its global average price for the month was $1,677. By comparison, on March 11, platinum was at a high point when its price was $1,607. Thus far this month, platinum’s global average price is $1,590.
Tuesday, as the markets focused on troubles in Cyprus and gold gained, April platinum on the NYMEX touched $1,549, the lowest level since January 4, according to Bloomberg.
This week has also delivered disappointing auto data from Europe. February registrations were down over 10 percent year-on-year and saw an 8-percent decline from the previous month. Some declines came from core nations such as Germany and France.
Even as prices have fallen, notable speculative interest remains in the market. There has been a good appetite for the metal in Asia. And, at the end of last week, platinum ETF holdings were at 1,660,500 ounces. That amount is extremely close to the record high of 1,664,400 ounces, Standard Bank pointed out.