Commodity Blog

Posts Tagged ‘platinum’

Platinum and palladium advanced as gold climbed to a record after the dollar weakened, boosting appeal the metals a hedge against inflation. Some investors purchase precious metals to preserve their buying power. January futures for platinum delivery advanced $23.50 (1.8 percent) to $1,325.30 per ounce on the New York Mercantile Exchange. December futures for palladium delivery climbed $7 (2.3 percent) to $310.30 per ounce in New York.

Gold jewelers, the biggest users of the metal, will have a hard time compensating high metal price during year-end holiday sales. Jewelers have to lower their prices as sales suffered after they tried to rise prices for jewelry. Gold gained $5.86 (6 percent) to $1,023.16 per ounce at 10:51 in London.

Platinum and palladium gain as the dollar declines, boosting appeal of the metals as an inflation hedge. The U.S. economy shrank at a 0.7 percent annual rate in the second quarter. January futures for platinum delivery rose $24.70 (1.9 percent) to $1,302.90 per ounce on the New York Mercantile Exchange. December futures for palladium delivery gained $9.20 (3.2 percent) to $299.20 per ounce in New York.

Coffee advanced because of speculation that demand will rise in the U.S. with recovery from the global economic recession. Price is also boosted by the decline of dollar, increasing the appeal of some commodities. The dollar tumbled 0.8 percent against a basket of six major currencies. December futures for Arabica coffee delivery advanced $0.023 (1.8 percent) to $1.278 per pound on ICE Futures U.S. in New York.

Platinum drops, following gold and silver decline, as a rebound dollar cut demand for precious metals as a hedge against inflation. Some investors sell platinum when the dollar rises. Most platinum is used in emissions-control parts for cars and trucks, and also as jewelry. October futures for platinum delivery slid $4.40 (0.4 percent) to $1,249.40 per ounce as of 11:04 on NYMEX.

Copper fell in New York as the U.S. unemployment rate in the U.S. rose, signaling a decline in demand. Consumers, concerned with possibility of losing their jobs, rein in spending as jobless rate rise faster than predicted and is heading to 9.5 percent. However, the market is bullish as any decline in copper prices may lead to a consumption growth. December futures for copper delivery dropped $0.005 (0.2 percent) to $2.86 per pound by 12:43 on the New York Mercantile Exchange’s Comex division.

Vietnam, the second-largest rice supplier, may export a record 6 million tons of rice this year. Vietnam’s rice exports are aided by a good harvest, low prices and large stockpiles. The price of Vietnam’s 5 percent broken-grain variety dropped to $398 per ton this month compared to $460 a ton in April, this is $163 a ton cheaper than price of rice in Thailand, greatest Vietnam’s rival. Global rice prices climbed to a record last year spurred by rising demand and cut in exports by some producers including Vietnam, which wanted to increase local supplies. Low prices for Vietnam’s rice may have not very great impact on global prices for rice considering decline in export’s from India because of drought.

Platinum gained because of concern that workers at Impala Platinum Holdings Ltd., the world’s second-largest producer of the metal, will strike in South Africa next week. Prices also rose as result of the dollar’s decline against the euro after German services and French manufacturing unexpectedly expanded in August boosting the attractiveness of the precious metals as a hedge against inflation. October futures for platinum delivery rose $13.10 (1.1 percent) to $1,255.10 per ounce by 12:25 on the New York Mercantile Exchange.

Sugar went above the 3-year high level on ICE Futures in New York today. The shortfall of this commodity in India (which is the world leading consumer of sugar) and the elevated global level of deficit spur speculations among the traders that the sugar will continue rising in the world. Analysts believe that the global hedge funds will increase their positions in sugar on deficit expectations. October delivery sugar futures rose to $0.1847/pound on ICE as of 11:11 today — that’s 0.2 percent compared to the Friday’s close level.

The platinum is expected to grow back to $1,500 level per ounce during next two years, according to some commodity analysts. The gain in demand conjoined with the decline of the supply from the South African mines can lead to a slow recovery of this industrial and precious metal. Platinum immediate delivery contracts rose to $1,199.75 per ounce (or 1 percent) during today’s trading session at SICOM as of 11:30.

Wholesale pork surged 5.5 percent to $0.6333 a pound during yesterday’s trading session, as the corporate meatpackers (such as Tyson Foods Inc.) decreased their slaughter rates to spur the price growth. Hogs futures reacted with an up-movement as the demand for hogs may also increase with the profits of the companies. October hog futures rose by $0.00975, which is 1.6 percent, to $0.60075 a pound as of 11:32 on CME.

Platinum gains as the metals get into the focus of the investment banks and hedge funds. The gain was noticeable mainly in the industry-applicable metals such as platinum and palladium. Goldman Sachs recommends buying January platinum futures because auto-production may rise soon. October futures on platinum rose by $13.90, or 1.2 percent, to $1,171.80 per ounce as of 12:38 on NYMEX.

Copper prices remain mostly unchanged during the trading session in New York as the commodity optimism may be coming to an end. September copper futures declined by $0.004 to $2.388 per pound as of 13:03 on the Comex division of the New York Mercantile Exchange.

Gold may average higher for each of the next three years and climb to a record driven by increased demand and a declining dollar as governments ramp up spending to battle the global recession, according to Morgan Stanley.

The metal may average $900 an ounce this year, up 20 percent from an earlier target of $750, the bank said today in a report. It may average $1,000 in 2010, $1,050 in 2011 and $1,075 in 2012, up as much as 34 percent from previous estimates, the report said. The commodity peaked at $1,032.70 on March 17.
Morgan Stanley joins Standard Chartered Plc in raising its target for gold prices amid concern that the dollar may drop as the supply of the currency is increased. President Barack Obama, sworn in yesterday, plans an $850 billion stimulus on top of a $700 billion bank-bailout package enacted under his predecessor.
“Devalued currencies, growing global incomes and a renewed appreciation for gold should keep prices higher,” Morgan Stanley’s New York-based analyst Hussein Allidina wrote. “A globally synchronous and aggressive fiscal and monetary stimulus may be needed to re-inflate the global economy, and we think this continues to present significant upside to gold prices.”
The International Monetary Fund has forecast that advanced economies including the U.S. will contract simultaneously this year for the first time since World War II, spurring stimulus plans backed by more state debt. Gold, regarded by some investors as a safe-haven asset, can rise when the dollar falls.
‘Weaker Dollar’
“Gold will remain relatively stable in the first half of the year, then later, a weaker dollar, pickup in inflation and flight to safety will help gold test its record high again,” said Chen Yonglin, an analyst at Citic Securities Co.
Gold climbed for an eighth year in 2008, gaining 5.8 percent “in a year when most other asset classes saw double- digit losses,” Morgan Stanley’s Allidina wrote. “The U.S. dollar should weaken as the global economy recovers.”
The metal for immediate delivery traded at $851.35 an ounce at 2:37 p.m. in Singapore, and has averaged $846.18 an ounce this year.
Standard Chartered said in a report e-mailed Jan. 15 that gold may average $971 an ounce in 2009, up 11 percent from the bank’s previous forecast. A weaker dollar, lower supply of the metal and safe-haven buying by investors should drive gold to more than $1,000 an ounce in the second half of this year, according to StanChart analysts led by Helen Henton.
Jim Rogers, the chairman of Rogers Holdings who correctly predicted in April 2006 that gold would reach $1,000 an ounce, said last month that he planned to buy more of the metal, adding that the price “will go much higher.”
Platinum may average $875 in 2009, $1,000 in 2010, $1,050 in 2011, and $1,150 in 2012, down as much as 42 percent from previous estimates, according to Morgan Stanley. Palladium may average $180 in 2009, $200 in 2010, $220 in 2011 and $240 in 2012, down as much as 39 percent from earlier calls, it said.