Quotes from Unicredit:
- Platinum moved up from $1,200/oz to challenge $1,250/oz last week with prices further supported by speculative demand, covering of open short positions and the addition of new longs.
- The gains did prompt stale ETF liquidation, although as prices have pulled back towards $1,200/oz fresh investment demand from South Africa has been seen.
- Despite the threat posed by impending US interest rate rises, platinum prices will remain supported by ongoing bullish developments to the fundamental backdrop given rising vehicle emission controls and the latest round of rolling power blackouts in South Africa, which further threaten to impact mine production.
- This supports our view that platinum will average a stronger $1,425/oz in 2015 from $1,383/oz in 2014.
The material has been provided by InstaForex Company – www.instaforex.com