Platinum futures are outperforming gold for the second consecutive day as traders react to South African production concerns, lifting a market that was previously pressured with a wide range of commodities on worries about the eurozone debt crisis.
"It's been so beaten down, and there are supply concerns," said Bart Melek, head of commodity strategy with TD Securities.
As of 11:32 a.m. EDT, most-active July platinum was $20.50, or 1.4%, higher at $1,487.30 an ounce (oz) on the New York Mercantile Exchange. The rise outpaces 0.3% gains in gold and copper, and platinum was higher earlier in the day even when gold and copper were in negative territory. Further, this comes one day after a $12.40/oz gain in the most-active platinum contract was more than double the gain in the most-active Comex gold futures.
"There are some labor problems that have developed in South Africa," said Bill O’Neill, one of the principals with LOGIC Advisors.
News reports suggest that a clash between unions is threatening production in the country, which provides roughly three-fourths of the world's primary mine output of platinum and with Russia is also one of the two largest palladium producers. . .View Full Article