Platinum to Average $1,700 per Ounce in Q4, Says BofA Merrill Lynch

Platts reported that Bank of American Merrill Lynch analysts believe that monetary tightening and higher interest rates in the United States are likely to increase the premium of platinum to gold prices. The bank expects platinum prices to average $1,500 per ounce in Q3 of this year and $1,700 per ounce in Q4.

As quoted in the market news:

‘Given an acceleration of growth especially in [developing markets] and tighter monetary policy in the quarters ahead, we believe cyclical metals like platinum will outperform gold in the coming quarters,’ BofA Merrill Lynch analysts said in a report.

‘Mirroring this dynamic and incorporating our new platinum price forecasts, we believe the platinum to gold price ratio will continue to rise,’ the report said.

Click here to read the full Platts report.