LONDON, Nov 21: The price of platium rose to a record high point and above $1,400 an ounce here on Tuesday, driven by rumours that a fund indexed against the metal is to be launched.

The price reached $1,402.50 an ounce on the London Platinum and Palladium Market (LPPM). The previous record was $1,340 on May 12.

The London Bullion Report commented: Platinum continues to be the star performer of the precious complex as aggressive fund buying and tightness across the forwards (contracts) have led the white metal to rally.

Platinum is used by the jewellery industry and in the manufacture of catalytic exhaust units for autos. The price has risen by 45.0 percent so far this year.

The financial news service AFX reported continuing rumours about the launch of an exchange-traded fund (ETF) for platinum.

Similar funds have been launched this year, indexed against the price of silver and of gold.

Each launch has generated a sharp increase in demand by investors and this has pushed up the price of the underlying physical asset

However, analysts warn

that a strong rise in the price might weaken industrial demand.—AFP