Platinum futures retreated $16.80, palladium futures declined $16.55

Other metals tracked gold lower today, with platinum trading at a steep discount to gold, turning its regular relationship with the yellow metal upside down.

January platinum futures retreated $16.80, or 1.2%, to $1,504.20 an ounce. Platinum, a rarer and more difficult metal to mine, traditionally trades at a premium to gold.

Platinum is also more closely connected to industrial activities, however, and as such has born the brunt of concerns about a potential global economic slowdown as the euro zone teeters.

The price difference between gold and platinum “has been widening in favor of gold since early September,” analysts at Commerzbank said. “We do not view this discrepancy as sustainable because it could bring about a shift in jewelry demand toward less expensive platinum.”

Platinum, alongside sister metal palladium, is a key raw material for the auto industry, used as part of catalytic converters.

Palladium looked set to end a winning streak. March palladium futures declined $16.55, or 2.4%, to $668.90 an ounce. Palladium settled higher for the eighth straight session on Wednesday. The metal has been on a tear since concerns about its supply surfaced in recent weeks.

March silver futures declined 60 cents, or 1.8%, to $32.03 an ounce.

Tags: palladium, palladium price, palladium prices, platinum, platinum price, platinum prices

Posted by admin on Dec 8 2011. Filed under Palladium, Platinum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry