LONDON, April 24: The price of platinum will set more record highs in 2008 on the back of flagging output in South Africa, the independent precious metals consultancy GFMS forecast on Thursday.

“For 2008, we remain positive ... and are forecasting trading between $1,700 and $2,400 per ounce for platinum,” the London-based group said in its annual report on platinum and sister metal palladium.

Platinum, used in the production of expensive jewellery and catalytic converters in vehicles, has blazed a record-breaking trail in recent months.

The white metal hit an all-time pinnacle of $2,301.50 on March 7 after surging by about 40 per cent in value last year because of tightening global supplies.

South Africa, which produces about 75 per cent of the world’s platinum, has faced dwindling output because of accidents, strikes and major power shortages.

Gold and palladium prices have also won strong support from weakening South African production.

“The dominant factor for platinum in 2007 was a sharp decline in global mine production,” GFMS said on Thursday.—AFP