Platinum Price Could Bounce Back as Margins Reduce

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"In the short term, it is possible for prices to slide even more, but looking 12 months from now ... prices might be higher and quite a bit," Standard Bank analyst Walter de Wet said.

Platinum prices could slide further on lacklustre demand for cars, but the market should bounce back when lower margins trigger production cutbacks.

"In the short term, it is possible for prices to slide even more, but looking 12 months from now ... prices might be higher and quite a bit," Standard Bank analyst Walter de Wet said.

Prices have fallen by more than 50 percent since the metal, widely used as a component in automotive catalytic converters, struck a record high of $2,290 an ounce in March.

Spot platinum fell to more than a two-year low of below $1,050 an ounce last week and stood at $1,178 on Thursday.

Power constraints in South Africa, which produces around 80 percent of the world's platinum, no longer pose a major threat to production. Most analysts expect the market to reduce its deficit or even register a small surplus going into next year. On the demand side, sales of cars in Europe as well as jewellery usage are expected to remain slack until next year.

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