February 21, 2008	Thursday	Safar 13, 1429

LONDON, Feb 20: Platinum ended its record-setting streak after 14 straight days on Wednesday after profit-takers stepped in, but it is likely to recover after a breather because of persistent supply problems, analysts said.

The metal fell more than 3 percent, after surging 43 per cent in less than a month on worries the market deficit will sharply widen this year following output losses in top producer South Africa due to an electricity supply crisis.

Platinum fell to $2,072 and was at $2,077/2,087 an ounce against New York’s close of $2,140/2,150 on Tuesday, when it hit a record high of $2,160.

Palladium rose to a 6-1/2-year high before falling, while gold gave up gains as oil slipped from record highs above $100 a barrel.

The platinum market is down on profit-taking. We have had a strong price rise in a very short period of time, so if you have a phase of consolidation coming through, that will not surprise me, said Michael Widmer, metals analyst at Lehman Brothers.

Platinum surged this year after mines in South Africa, which account for 80 per cent of the world’s supply, ground to a halt for 5 days at the height of last month’s power crisis.

The mines now get 90 per centof normal supply and analysts said it would take years to normalise the situation.

Platinum slipped in other markets also. The December 2008 contract on the Tokyo Commodity Exchange ended 175 yen per gram lower at 6,965 an ounce.

In other metals, gold fell to $924.70/925.60 an ounce after a high of $929.50, against $927.00/927.80 in New York.

The metal came under pressure because of oil prices, which retreated after hitting a record high above $100 a barrel on Tuesday, as investors focused on a US inventory report expected to show crude stockpiles rose for a sixth week.

Having been through a period of consolidation, gold is now extremely well placed to set a fresh record high as investors continue to seek the metal’s anti-inflationary and safe-haven attributes, said James Moore.

Silver edged up to $17.44/17.49 an ounce from $17.36/17.41, while palladium rose up to $495 an ounce before falling to $468/472 an ounce, versus $491.00/494.00.—Reuters