PGMs Rise Sharply on Risk Tolerance, Weak USD

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"Platinum group metals are sharply higher largely in response to moves in other markets."

Platinum group metals are sharply higher largely in response to moves in other markets, more-so than any PGM-specific news, says one trader. "They're riding the tailwinds of the better equities, better U.S. earnings (reports), the weak dollar and high euro," he says.

Global risk appetite is on the pick-up after a strong report on U.S. existing-home sales and decent corporate earnings, particularly Intel. A stronger dollar tends to boost commodities generally, and the euro rose above $1.45 against the greenback in response to the improved risk sentiment and also a favorable Spanish debt auction that temporarily alleviated some of worries about euro-zone debt issues widening.

Just before 10:30 a.m. EDT, July platinum was up $35.20 to $1,806.50 an ounce on the New York Mercantile Exchange, while June palladium was up $30.65 to $761.75.

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