Platinum slumped to the lowest since 2009 after Greece’s vote against austerity fueled concern that demand in Europe will retreat. Gold advanced.
The price of platinum has slumped every quarter since June 2014, when miners ended a five-month strike in South Africa, the world’s largest supplier. Europe accounts for about 25 percent of global sue of the metal, used in pollution-control devices for cars.
Greeks voted in a referendum to reject further measures required to win another bailout, spurring speculation the country will be forced to quit the euro zone. The prospect of slowing consumption comes as CPM Group says platinum mine output is set to gain this year amid plentiful inventories. Palladium, also used in catalytic converters, tumbled into a bear market last month.
“Today is the affect of the no-vote in Greece, and overall these metals have been hurt because of concerns about demand in Europe and China,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “We have seen most industrial metals trade weaker.”
Platinum for immediate delivery fell 1.9 percent to $1,062.95 an ounce at 1:40 p.m. in New York, according to Bloomberg generic pricing. Earlier, prices touched $1,048.28, the lowest since March 2009. The metal capped a fourth straight quarterly decline last month in the longest run of losses since 2011.
Spot palladium fell 2.5 percent to $677 an ounce, heading for the biggest drop since May 11.
Gold for immediate delivery gained 0.3 percent to $1.172.60, erasing earlier declines of as much as 0.5 percent. Prices rebounded as the dollar pared gains.
The Bloomberg Dollar Spot Index climbed 0.2 percent, after advancing as much as 0.5 percent.
“The dollar coming off and the U.S. stock market continuing to trade in the red is pushing some people to gold for safe-haven buying,” Mike Dragosits, a senior commodity strategist at TD Securities, said in a telephone interview.
Silver also rebounded.