Commerzbank: Platinum May Rise to $1,601

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"Platinum price represents 5.8% gain this year."

Platinum may climb to $1,601 an ounce in the next three weeks after prices rebounded from a support level and rose above a moving average, according to technical analysis by Commerzbank AG.

The chart reveals the metal gained from the 20-month trend-channel support line and July's low, advancing above the 55-day moving average. A second chart shows platinum is near a 200-day moving average and likely to target one of the levels singled out in so-called Fibonacci analysis.

"This is bullish price behavior," Axel Rudolph, a technical strategist at Commerzbank in London, said today in a report. "Once the 200-day moving average has been surpassed as well, the 50% Fibonacci retracement of the April-to-May fall at $1,601 will be back in the picture."

Platinum, used mostly to make jewelry and pollution-control devices for cars, reached a four-week high of $1,567.35 an ounce today. Prices gained the past two weeks as reports showed accelerating growth in U.S. and Chinese manufacturing and increased hiring by American companies.

The metal traded at $1,550 an ounce at 12:36 p.m. in London, for a 5.8% gain this year.

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices tend to drop or climb by certain percentages after reaching a high or low. A moving average shows a commodity's average price in a specified time period.

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