LONDON (Commodity Online: The spread in which Gold is higher than Platinum ($150 as of late last week) may widen, said BNP Paribas in a research note.
Platinum has been at a discount to gold since September. Industrial demand for platinum, including auto catalysts, has been weak and mine supply should keep growing in 2011 and 2012. Consequently, the surplus in the market is expected to increase this year and next, BNP added.
Palladium, meanwhile, has been hardest hit precious metal due to the deterioration in the economic outlook since it has the most industrial uses.
“We expect the Palladium market to be in surplus until at least mid-2012, before a rebound in economic growth helps demand recover. At that point, palladium may start to outperform the rest of the complex. One large unknown is the size of the Russian state’s stockpile, which we believe may be depleted by 2013,” said BNP Paribas.
BNP now forecasts Platinum to average $1,610 an ounce in the fourth quarter and $1,825 for full-year 2012. Palladium is forecast to average $640 an ounce in the fourth quarter and $785 for 2012.
By Allen Sykora of Kitco News; asykora@kitco.com
