LONDON, Nov 11: Platinum traded just below a near-26-year high in Europe on Friday, but the precious metal has the potential to climb towards the big number of $1,000 an ounce on speculative and trade buying, dealers said.
Palladium was near a 17-month peak, while gold slipped marginally from its last quote in New York on Thursday.
Spot platinum was quoted at $957/961 a troy ounce by 1119 GMT, down from New York’s close on Thursday of $959/962, which was the highest since March 1980.
We are tracking a new territory and the uptrend is going to continue, said Julia Hamblett, trader with Dresdner Kleinwort Wasserstein.
But platinum also needed support from buyers who were not speculators, she said.
Platinum and palladium are crucial components of anti-pollution systems in motor vehicles.
Platinum is also widely used in fine jewellery, and palladium jewellery has became a popular, cheaper option.
Investment demand looks set to continue in the coming sessions with platinum potentially targeting the $1,000 level as the market lacks significant chart resistance levels, said James Moore of the Bulliondesk.com.
Industrial and jewellery substitution as well as overflow interest...look set to push palladium higher, with resistance now pegged at $250, he said in a report.
Palladium was unchanged from New York’s $239/242, off Thursday’s 17-month peak of $244.
Palladium prices have jumped about 32pc in just over a month, while platinum is up around 6pc during the period.
In contrast, we fundamentally dislike palladium due to the surplus state of the market, large stocks and decent-sized long positions, although this has been the case for some time.
Gold prices eased after rising to a 10-day high of $470 an ounce on Thursday, with market players keeping an eye on the dollar and crude oil prices for fresh direction.
Spot gold was quoted at $466.10/466.90 an ounce, down from the New York close of $466.70/467.50.
Gold continued to hold its recent trading range despite falling to $455 last week, and some analysts said the metal was expected to gain, supported by safe-haven, physical and investment demand.
Silver was at $7.70/7.73, compared with $7.68/7.70 in the US market on Thursday. —Reuters
