Platinum rose to a record, extending the longest rally ever, on speculation global demand bolstered by China will outpace production. Palladium also rose.
Societe Generale SA, France's second-biggest bank, forecast a platinum shortfall of about 180,000 ounces this year, following a surplus last year. Chinese platinum-jewelry demand will probably increase this year from 800,000 ounces in 2006, the bank said in a report. The price of platinum has climbed for 11 sessions in a row, a record.
``Chinese demand has been soaring,'' Societe Generale analyst Stephen Briggs said in the report. ``Market tightness is becoming highly visible.''
Platinum futures for January delivery rose $3, or 0.2 percent, to $1,401.20 an ounce on the New York Mercantile Exchange. The price earlier reached $1,402, the highest ever. The metal has climbed 22 percent this year.
Platinum is also used to make pollution-control devices.
Strikes in South Africa, the world's biggest producer, disrupted supplies this year, and investor demand for the precious metal climbed because of inflation concerns.
Palladium futures for December delivery rose $10.55, or 3 percent, to $362.50 an ounce. They have climbed 7.1 percent this year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment