Goldman: Platinum to Outperform Gold

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"Auto industry pushes platinum demand against constrained supply."

Goldman Sachs says it looks for platinum prices to rise with gold, and "likely outperform as the cyclical recovery in the automotive industry pushes platinum demand against a constrained supply base, notably in South Africa."

Within the commodities arena, Goldman says the near- to medium-term fundamentals remain most constructive for crude oil, copper, platinum and corn, with the short-term risk/reward looking best for crude oil. Goldman says it maintains an "overweight" recommendation for commodities.

Goldman says "recovering global automobile demand will likely continue to put upward pressure on auto-catalyst demand and therefore on platinum and palladium prices."

In the case of copper and crude oil, Goldman cites "expectations that supportive policy shifts in China and the United States, on top of already exceptionally high levels of emerging-market commodity demand, will lead to further tightening in commodity fundamentals."

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