Platinum, Palladium Plunge on Concerns Over Global Recovery
Platinum plunged the most in almost three months and palladium the most in more than four months in London amid concern that global economic recovery may stall, eroding demand for raw materials.
The MSCI All-Country World Index, a measure of global equities, fell 12 percent from this year’s high in May. U.S. initial jobless claims fell last week to a level that shows limited improvement in the labor market. The S&P GSCI Spot Index of raw materials dropped as much as 3.5 percent, led by declines in energy and agricultural commodities.
“The market is very focused on the weak industrial demand for platinum and palladium at this stage,” Walter de Wet, head of commodities research at Standard Bank Plc in London, said by phone. “It’s a lot on the back of the falling equities and liquidation in commodities.”
Platinum for immediate delivery fell $58.30, or 3.3 percent, to $1,722.70 an ounce by 5:52 p.m. in London, after dropping as much as 3.8 percent, the most since May 5. Palladium plunged $48, or 6 percent, to $747.50 an ounce, and earlier fell as much as 6.5 percent, the most since March 15. The metals, used in autocatalysts, were down 2.8 percent and 6.7 percent since the start of the year, respectively.
Manufacturing indexes from Asia to the U.S. to Europe fell in July as demand weakened and the global recovery from recession lost momentum, reports showed Aug. 1.
To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net;
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.
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