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PRECIOUS-Platinum rallies for third day on economic rebound hopes

PUBLISHED: Tue, 16 Feb 2021 01:26:19 GMT

Feb 16 (Reuters) – Platinum prices rallied for a third straight session on Tuesday, hitting a near six-and-a-half-year peak on hopes that a swift global economic rebound would boost demand for the auto-catalyst metal. FUNDAMENTALS * Platinum rose 1% to $1,315.32 by 0102 GMT, after hitting its highest since September 2014 at $1,320.50. * The metal is used by automakers for catalytic converter manufacturing to clean car exhaust fumes. * Platinum may see a third consecutive annual deficit in 2021 amid supply concerns from South Africa, the world’s largest platinum producer. * South African miner Sibanye-Stillwater on Monday reported a 40% increase in 4E Platinum Group Metals (PGM) mineral reserves at its SA PGM operations. * Palladium , also used in the auto sector, climbed 0.3% to $2,394.57, having hit a one-month peak of $2,415.68 in the previous session. * Spot gold edged up 0.1% to $1,820.71 per ounce. U.S. gold futures slipped 0.1% to $1,822.10, while silver gained 0.2% to $27.63. * The dollar eased against rivals, making gold more affordable. * Benchmark U.S. Treasury yields rose to their highest levels since March. * Global shares held firm on Tuesday, looking to extend their bull run to a 12th consecutive session as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets. * Market participants now await minutes of the Federal Reserve’s end-January monetary policy meeting on Wednesday. * The euro zone is likely to decide between March and May when and how governments would start tapering support to their economies as vaccinations allow the lifting of pandemic lockdowns and economic activity picks up, officials said on Monday. * The World Health Organization on Monday listed AstraZeneca and Oxford University’s COVID-19 vaccine for emergency use, widening access to the relatively inexpensive shot in the developing world. (Reporting by Sumita Layek in Bengaluru; Editing by Devika Syamnath)

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