Platinum price rises further amid supply chain fears
Platinum prices rose for the second day of Monday, supported by broader gains in the energy and industrial metals markets.
The price of platinum – used in the auto industry – rose 0.87% to $ 1,030.5 an ounce on Monday. The precious metal jumped more than 4% on Friday October 8.
The rise in oil, coal and gas prices was a sign of supply chain problems and inflation fears, which was a positive sentiment for commodities, including platinum, said Wahyu Laksono, the founder of the Jakarta-based community currency exchange platform Traderindo.com. .
“Platinum rebound to over $ 1,000 is only a matter of time,” he added.
The price of platinum traded above $ 1,300 an ounce in mid-February, as countries gradually reopen and resume their pre-pandemic life, which was bullish for demand for metals, including platinum. As the metal is used up, the auto industry expects an economic recovery to mean travel picks up and new jobs have been created, supporting demand for cars.
But the metal failed to maintain its gain and traded below $ 1,000 an ounce following a forecast from the World Platinum Investment CouncilI in September of a surplus on the platinum market due to the increase in supply in a context of strong demand.
Use of semiconductors
ANZ Research analysts wrote in today’s note that semiconductor producers in Asia are operating at very high levels of capacity utilization, but the global chip shortage will continue into the next year nonetheless. , adding even more uncertainty to uneven recoveries.
“Add in energy shortages, and the economic landscape is materially more sober than the optimism that accompanied the early stages of the global recovery,” the analysts wrote.
The global chip shortage had hampered auto production, hitting platinum prices.
Read more: Is Platinum Still a Buy in 2021 After Hitting Multi-Year Highs
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