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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..

13 Oct 2013

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.


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