Platinum is trading at the cheapest since 2013 relative to gold, as global economic concerns weigh on the demand outlook for the white metal.
Platinum is mostly used for automotive catalytic converters, which account for more than 50 percent of usage, according to Johnson Matthey Plc. Gold is held mainly by investors and used in jewelry, with industrial consumption limited to about 10 percent of demand. The ratio between the metals in the spot market dropped on Monday to about 0.93, the lowest since January 2013.
“The steady decline in the ratio shows that people have doubts about the global growth story,” Mike McGlone, the New York-based director of research at ETF Securities LLC, said in a telephone interview. “We have not seen much improvement in Europe even after all the stimulus measures adopted by the region.”
On the New York Mercantile Exchange, platinum futures for July delivery slid 0.7 percent to settle at $1,104.20 an ounce at 1:18 p.m., posting the seventh straight loss and the longest slump since March.
Vehicle sales in Europe declined 24 percent in April. The region accounts for about 25 percent of global platinum demand.
Gold futures for August delivery declined 0.1 percent to $1,188.70 an ounce on the Comex in New York, after climbing as much as 1.3 percent. Prices erased gains after a private report showed that U.S. manufacturing expanded in May, reviving concerns that the Federal Reserve is getting ready to raise interest rates.
Silver and palladium also dropped.