Platinum rallies to more than six-year high on hopes of economic recovery
Expected rise in Chinese jewellery demand and concerns over vulnerable SA supplies are driving prices, analyst says
Bengaluru — Platinum prices extended a rally on Monday to scale their highest in more than six years on firmer investor expectations that an economic recovery would boost demand for the autocatalyst metal and lead to a supply shortfall. Platinum, used by the auto industry to filter emissions from engine exhausts, rose to its highest since January 2015 at $1,285.17 an ounce. It was up 2.1% at $1,279.12 by 8.33am.
“The economic recovery play, including a recovery in Chinese jewellery demand in 2021, with concerns that South Africa supplies will remain vulnerable to the Covid-19 [pandemic],” is driving prices, said Nicholas Frappell, global general manager at ABC Bullion. “Further price targets on the upside extend to $1,330 and $1,577.”..
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