Platinum Hits 6-Year High; Gold Snaps 4-Day Rally

imageCommodities7 hours ago (Feb 11, 2021 21:12)

© Reuters.

By Barani Krishnan – Platinum reasserted itself on Thursday as an asset to watch in the precious metals space as the auto-catalyst metal rallied to six-year highs before settling flat on the day.

Gold also lost a winning streak in place since Thursday, falling nearly 1% to snap a four-day rally that had bolstered its prices by more than 3%.

Benchmark platinum futures for March delivery on New York’s Comex settled up just 10 cents at $1,247 an ounce after hitting a 2015 high of $1,281.10.

Platinum serves as an emissions purifier in diesel cars just like palladium, which is used as a catalyst for gasoline engines. Platinum’s rally on Thursday came after specialist metals refiner Johnson Matthey (LON:JMAT) projected a third consecutive annual supply deficit for the commodity in 2021.

“The market has been looking beyond the pandemic – to a recovery in the auto sector, which will eventually happen,” StoneX analyst Rhona O’Connell was quoted as saying, with reference to the platinum.

Citi Research said platinum, also a key ingredient in fuel cells, could rise to $1,300 by the year-end.

Gold futures for April delivery on Comex settled down $15.90, or 0.9%, at $1,826.70. Since its tumble to 10-week lows beneath $1,785 on Feb. 4, gold has rebounded more than 3% over the past four sessions, hitting a one-week high of 1,856.45 on Wednesday.

Thursday’s slide in gold came after the Dollar Index snapped a four-day decline that had coincided with the gold rally. Gold and the dollar are rival assets that typically move in opposite directions.

Platinum Hits 6-Year High; Gold Snaps 4-Day Rally

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