PLATINUM rose to its highest in more than six weeks yesterday assupply worries lingered after violence at Marikana, while gold firmed a touch.
Forty-four people have been killed over the past week in the conflict at the mine run by Lonmin, the world's number three platinum producer.
Spot platinum hit about R12258 an ounce after rallying more than 5% last week, fuelled by worries that the violence would disrupt supply from South Africa.
The gold-platinum premium dropped to below R1246 an ounce, its lowest since early July, after hitting a record above R1911 just last week as grim economic prospects weighed on platinum while gold was supported by hopes for more monetary stimulus from central banks around the world.
"If things in South Africa calm down, we may see the gold-platinum spread widen again because the demand for platinum group metals is not good," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
As the gold-platinum spread has shrunk to a multi-week low, some investors may start to reverse their recent trading strategy of buying platinum and selling gold, Fung added.
Spot gold gained 0,2% to about R13437 an ounce. The US gold futures contract for December delivery was up 0,1% at about R13474. Gold investors are still waiting for clear signals from central banks on what they plan to do to shore up their fragile economies.
US consumer sentiment improved in early August to the highest in three months, adding to the argument that the US Federal Reserve may not need to launch another round of bond purchases soon as the economy has shown signs of stabilising.
Hedge funds and money managers cut their net-long position in US gold futures and options for a second consecutive week.
Platinum hits 6-week high on massacre
PLATINUM rose to its highest in more than six weeks yesterday assupply worries lingered after violence at Marikana, while gold firmed a touch.
Forty-four people have been killed over the past week in the conflict at the mine run by Lonmin, the world's number three platinum producer.
Spot platinum hit about R12258 an ounce after rallying more than 5% last week, fuelled by worries that the violence would disrupt supply from South Africa.
The gold-platinum premium dropped to below R1246 an ounce, its lowest since early July, after hitting a record above R1911 just last week as grim economic prospects weighed on platinum while gold was supported by hopes for more monetary stimulus from central banks around the world.
"If things in South Africa calm down, we may see the gold-platinum spread widen again because the demand for platinum group metals is not good," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
As the gold-platinum spread has shrunk to a multi-week low, some investors may start to reverse their recent trading strategy of buying platinum and selling gold, Fung added.
Spot gold gained 0,2% to about R13437 an ounce. The US gold futures contract for December delivery was up 0,1% at about R13474. Gold investors are still waiting for clear signals from central banks on what they plan to do to shore up their fragile economies.
US consumer sentiment improved in early August to the highest in three months, adding to the argument that the US Federal Reserve may not need to launch another round of bond purchases soon as the economy has shown signs of stabilising.
Hedge funds and money managers cut their net-long position in US gold futures and options for a second consecutive week.
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