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Rising demand, disrupted supply: Platinum breakout rally rides on shortage

Unlike yellow metal, platinum tends to have a positive correlation with equities

Rising demand, disrupted supply: Platinum breakout rally rides on shortage
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With gold becoming expensive, many consumers may shift to platinum jewellery

Sanjay Kumar Singh New Delhi
Platinum closed above the $1,300-per ounce mark on February 15 after a gap of more than six years. Its rally has outpaced gold over the past year.

Rising demand, disrupted supply 

A key driver of the rally is the expected global economic recovery.

“Optimism regarding automobile and industrial demand has led to this price rise,” says Naveen Mathur, director of commodities and currencies, Anand Rathi Share & Stock Brokers. The auto industry is a major consumer of platinum, which it uses to produce autocatalytic converters.

China has implemented Phase VI emission standard from January 2021.

“Tougher pollution norms will lead

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First Published: Feb 19 2021 | 6:10 AM IST

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