Feb 10 (Reuters) – Platinum raced to a six-year peak while palladium jumped over 3% on Wednesday on hopes of a fillip to demand from the automobile sector as the economy recovers, with supply likely to remain strained.
Platinum climbed 5.3% to $1,237.45 per ounce by 1:41 p.m. EST (1841 GMT), having earlier hit its highest since February 2015 at $1,250.00.
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“We’re expecting demand for autos to increase globally as we move into a recovery phase,” said Bart Melek, head of commodity strategies at TD Securities, adding higher standards for pollution control will require more of the metal. read more
Palladium rose as much as 3.1%, and was last up 1.4% at $2,351.59.
The market also took cues from a report by specialist materials company Johnson Matthey (JMAT.L), which said both metals, used in catalytic converters to clean car exhaust fumes, could see supply shortfalls this year. read more
Spot gold meanwhile, rose 0.3% to $1,842.66. U.S. gold futures settled up 0.3% at $1,842.70.
“Gold’s in a bit of tug of war,” said ED&F Man Capital Markets analyst Edward Meir, adding that while the weaker dollar is bullish, there are expectations that a big U.S. stimulus package may eventually lead to higher interest rates, which will increase the opportunity cost of holding bullion.
The U.S. Congress is expected to pass a $1.9 trillion relief bill. read more
Silver , however, eased 0.6% to $27.05 an ounce.
A retail frenzy last week had driven silver up to as high as $30.03, before a sharp retreat. Analysts projected strong demand for silver this year, given its industrial applications, including solar cells.
“People are now trading silver very cautiously given the volatility, and they need something more clear from Powell before resuming the upside,” said Bob Haberkorn, senior market strategist at RJO Futures.
Markets are awaiting policy cues from Fed Chairman Jerome Powell’s speech at a virtual event at 1900 GMT. read more
Reporting by Eileen Soreng in Bengaluru; Editing by Steve Orlofsky
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