Platinum Slumps To Three-Year Low
It was its lowest fix since December 1, 1993. Yesterday morning it recorded $372.00.
It is a bit puzzling. There has been a big seller in the market
(Thursday and Friday) which has put pressure on the platinum-gold spread, one dealer said.
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Other dealers said unwinding of a long platinum position in Tokyo overnight had started the price weakness.
Platinum briefly traded at a discount to gold yesterday morning as the yellow metal rallied in response to weaker stock and bond markets.
Imports by Japan, the leading user of platinum, have been lower this year than last, which has put the price under pressure in a
well-supplied market, dealers said.
Gold prices rebounded sharply on Thursday as speculators anticipated a possible move by hot money into bullion if comments by US Federal Reserve chairman Alan Greenspan unnerve Wall Street.
Gold advanced, first in the Far East and then in Europe, as stocks and bonds slipped after Greenspan said on Thursday that the Fed must be wary when irrational exuberance infects stock and other asset markets.
Short covering continued into early European gold business.
Gold was fixed at $373.00 per ounce up from $369.00 on Thursday as the market continued to pull away from a three-year low fixing of $367.40 plumbed on Tuesday. Gold has been as low as $366 spot trading this week. Prices have been under pressure from rumours of central banks selling gold and a daily dribble of metal on to the market.