Last Updated : 13 October 2013 at 21:50 IST
Barclays sees potential for Platinum/Gold spread to widen
Source :Commodity Online/Barclays
Barclays Capital sees potential for the platinum/gold spread to widen. Prices have trended lower throughout the precious-metals complex lately, with gold unable to benefit from the U.S. political stalemate over budget and debt-ceiling issues.
- Spices, Oilseeds counter bearish, Sugar range bound: SMC
- In oilseeds complex, Mustard January may remain below 3820 on increase acreage, adequate carryover stocks. Soybean decline seems to be capped with robust soymeal exports which has doubled to 503,269 tons in November compared to a month ago. Apri
- read more
India's production of pulses is estimated at 19 million tons for 2013-14 and the demand for pulse..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
NEW YORK (Commodity Online): Barclays Capital sees potential for the platinum/gold spread to widen. Prices have trended lower throughout the precious-metals complex lately, with gold unable to benefit from the U.S. political stalemate over budget and debt-ceiling issues.
“As we have highlighted previously, a key downside risk for platinum is weaker gold prices, which indeed has overshadowed positive developments for platinum prices,” the British bank added.
According to Barclays, Year-to-date inflows into physically backed exchange-traded products are now a “sizeable” 762,000 ounces of platinum. Further, a recent strike occurred against Anglo American Platinum, costing the company 44,000 ounces of output.
“In our view, there is greater scope for the spread to widen as gold struggles to draw support from the seasonally strong period of consumption alongside heightened political uncertainty in the U.S., while platinum still faces risks of additional supply disruption,” they continued.
While labor issues are always a concern in the key producing nation of South Africa, there is also potential for water restrictions due to a drought, although major companies say they have not been affected yet, Barclays concluded.
- Gold options indicates bullish sentiment: Saxo Bank
- Firm data keeps US Gold down, MCX Gold opens negative
- US Crude Oil rises further on stockpiles drop, Gold falls after short covering rally
- Gold falls to 5 month low on US stimulus fears, MCX Gold to remain weak
- India Gold bearish, US Gold near 5 month low on tapering fears
- US Gold five month low, firm data weigh