Platinum has lost its groove again
Platinum has lost its groove again.
Two weeks ago platinum briefly topped gold to regain its traditional status as the more expensive metal.
But it was a brief moment of glory, lasting only a few days.
And platinum for April delivery continued to lag gold Monday, ending at $1,646.70 an ounce on the Comex division of the New York Mercantile Exchange vs. $1,685.60 an ounce for gold.
Platinum is harder to find and more difficult to mine, and it has usually traded at a premium to gold. But since mid 2011, gold’s steep gains have turned the relationship upside down.
Despite the recent losses, James Steel with HSBC in New York is bullish on platinum. The metal “is still vulnerable to supply disruptions, especially from South Africa,” he said. Most platinum is mined in South Africa, and earlier this month a strike at one of the country’s top platinum mines pushed the metal’s prices higher.
South African mines are seen as aging and dogged by labor strife and infrastructure problems. – MarketWatch
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