Cyprus Mail
Banking and FinanceBusinessCyprus Business NewsInternational

Platinum price surges on auto sector demand; gold steady; silver moves higher

platinum diamond
Diamonds set in platinum ring

Gold dipped on Friday with a firmer dollar, while platinum was headed for its biggest weekly rise since March 2020 on expectations for a revival in auto sector demand.

“There’s a concern about a tight market for platinum. The trend is bullish, and people will be happy to keep buying the dip,” said Fawad Razaqzada, market analyst with ThinkMarkets. Silver rose 1 per cent to $27.21 per ounce.

Spot gold eased 0.3 per cent to $1,819.16 per ounce by 2:58 p.m. EST (1958 GMT). US gold futures settled down 0.2 per cent at $1,823.20. The dollar was up about 0.1 per cent, but was set for its biggest weekly loss in eight.

The macro backdrop remains supportive, with gold prices “likely to resume their uptrend in coming weeks given our expectations for the dollar to weaken further alongside real yields remaining low or negative,” said Standard Chartered analyst Suki Cooper. “Market focus remains on the size and timing of the US fiscal stimulus, inflation expectations and progress of the vaccine rollout,” she added.

Gold was also headed for its first weekly gain in three, helped by expectations for a $1.9 trillion US coronavirus relief package, given its status as a hedge against inflation likely spurred by widespread stimulus.

“As far as this stimulus goes it’s positive for gold but it’s not new… The market is not reacting to it at the moment,” said HSBC analyst James Steel, adding gold prices are likely to average $1,907 for the year. Spot platinum rose 1 per cent to $1,247.28 per ounce after jumping as high as $1,268.88 on Thursday, en route to an over 10 per cent weekly rise.

Palladium gained 1.9 per cent to $2,390.36. Both metals are used by automakers in catalytic converters to clean car exhaust fumes.

Silver has seen an influx of fresh interest following a brief spike in spot prices triggered by a retail frenzy last week. Analysts are also betting on further gains this year from industrial demand. .

Follow the Cyprus Mail on Google News

Related Posts

Winners of Stelios bicommunal awards announced

Tom Cleaver

Electricity authority finds illegal solar installations

Staff Reporter

Cyprus sees ‘one of the largest increases’ in renewable energy share

Tom Cleaver

“Nurturing the talents of tomorrow”: Adsterra Backs Up the 2nd Youth Tech Fest Cyprus 2024

Souzana Psara

Comparing European loans: What borrowers need to know

CM Guest Columnist

Oil extends losses on easing Middle East tension, demand concerns

Reuters News Service