Breaking News

Tweet TWEET

Platinum Cuts Weekly Gain as Rally to 16-Month High Boosts Sales

Platinum declined, trimming a weekly advance, on speculation that a climb to the highest price in more than 16 months will prompt some investors to sell. Gold was little changed.

Platinum for immediate delivery dropped as much as 0.7 percent to $1,706.75 an ounce and was at $1,710.80 at 3:02 p.m. in Singapore, up 1.6 percent this week. Prices reached the highest since September 2011 yesterday before dropping 1 percent. Spot gold was at $1,672.30 an ounce from $1,671.65 yesterday, up 0.3 percent this week.

Platinum has climbed 12 percent this year on concern supply may drop in South Africa, the largest producer, and as investors boosted holdings in exchange-traded products backed by the metal to a record 51.461 metric tons yesterday, data compiled by Bloomberg show. Platinum’s 14-day relative strength index on Feb. 6 had risen above 70, a level that indicates to some analysts who study such charts that a drop in prices may be imminent. The reading was at 62.5 today.

“Palladium and platinum are down a little bit having risen strongly in the last two months,” said Nick Trevethan, an analyst at Australia & New Zealand Banking Group Ltd. in Singapore. “Reduced activity in China and Asia ahead of the holiday has probably led to a little more selling pressure.”

China’s financial markets will be closed next week to mark the Lunar New Year holiday.

Gold for April delivery was little changed at $1,672.90 an ounce on the Comex in New York. Cash bullion of 99.99 percent purity fell 0.2 percent to $336.80 yuan a gram ($1,679.40 an ounce) on the Shanghai Gold Exchange. Most-active futures were little changed at 30,814 rupees per 10 grams ($1,788.90 an ounce) on the Multi Commodity Exchange of India Ltd.

Palladium dropped as much as 1.3 percent to $741.75 an ounce, and was at $746, poised for a weekly loss. Silver was little changed at $31.515 an ounce, also set for a weekly loss.

To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.