LONDON, Nov 10: Platinum prices held around their highest in 25-1/2 years in Europe on Thursday amid investment fund interest, while gold built on the previous session’s gains, traders said.
Platinum is looking good...and there appears to be reasonable buying below the market, one trader said. Fundamantally, more stringent world auto emission laws and increased production of diesel-powered vehicles had boosted platinum prices, which touched $956 an ounce.
The main issues for platinum is higher diesel car demand, which has driven prices higher, while the market has generally benefited from a broader trend higher in commodity prices, Frederic Panizzutti at MKS Finance said.
Standard Bank London said in its daily report that the break through long-term resistance meant funds would be targeting $1,000. Sot platinum was quoted at $956.00/959.00, against $950.00/953.00 late in New York on Wednesday.
Palladium was also stronger at $239.00/244.00 an ounce, up from $233.00/237.00 and the highest since June 2004.
Although palladium is a more efficient catalyst in gasoline engines, only platinum is used in diesel vehicles.
Palladium rose above $1,000 in early 2001, but more reliable exports from Russia and increased production from South Africa helped prices ease back.
Gold was stable after building on Wednesday’s gains, marking time ahead of UStrade data due at 1330 GMT and shrugging off a firm dollar.
Julia Hamblett of Dresdner Kleinwort Wasserstein said the market was likely to hold in a range until then, with a break of $469.00 targeting $474.50, which would confirm the recent upturn in sentiment.
Gold was at $466.75/467.45, against the $466.20/467.00 last quoted in New York. Silver was at $7.69/7.71 from $7.65/7.67. —Reuters
