Platinum: Softening Gold’s Drop?
January 12, 2009 by Martha Rooks
As usual just lately, it’s a rough turn into the week for gold prices. Gold prices fell the most in six weeks as the dollar’s climb and slumping energy costs reduced demand for the precious metal as a hedge against inflation. Silver also declined.
So I thought we’d take a look at platinum prices. South African investment bank and asset manager Investec is now cuttingt its 2009 and 2010 price forecasts for platinum, palladium and rhodium, citing a downturn in demand from industrial users such as carmakers.
“The platinum price has rallied in the last few weeks, but a weak rhodium price and strengthening rand mean the platinum group metal basket price remains low and a number of mines are still losing money,” said Investec analyst Rebecca O’Dwyer in a research note.
