Platinum Prices May be Set for 11-percent Jump

Mineweb reported that platinum prices have risen over their 200-day moving average and from there may increase 11 percent to hit their highest level since February, according to TD Securities.

As quoted in the market news:

‘Platinum looks to be on an uptrend,’ said [Bart] Melek, [head of commodity strategy at TD,] who was among the five most-accurate precious-metals forecasters over the past two years. ‘We see positive actions on the charts.’

Platinum, which slumped 15 percent last quarter, gained 6.8 percent last month on signs of economic revival in Europe and China. Chinese jewelers are the world’s biggest platinum consumers followed by European car companies, according to Johnson Matthey. Mine output in South Africa, the world’s biggest producer will decline 1.6 percent this year to the lowest since 2000, according to Barclays Plc and Johnson Matthey data.

‘Bullish fundamental reasons in tandem with strong technical charts will help prices rise,’ Melek said.

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