Like the rest of the precious metals complex, platinum has lost considerable ground since mid-December on the approach of the US fiscal cliff and the unfortunate governing skills of US leadership. News earlier in the week of a possible South African platinum export quota should be supportive to prices, as that move promises to restrict flow of supply to the world and might also increase the financial pressure on South African mining companies.
While many traders think the recovery is primarily technical in nature after the recent slide of roughly $121 an ounce, Some in the market think that platinum has the strongest fundamental case within the metals complex. Most in the market agree that platinum will need to get beyond the fiscal cliff deadline without an economic and credit downgrade for the US in order to sustain this recovery.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Follow us on LinkedIn