Platinum to outperform Gold: Bank of America Merrill Lynch

UNITED STATES September 11 2013 11:44 AM 

NEW YORK (Scrap Register): Improving economics in developing markets and the likelihood of tighter monetary policy will support cyclical metals like platinum over gold, said Bank of America Merrill Lynch Global Research in a snippet.

Because of this, they expect the platinum to gold price ratio to rise.

The firm also updated its 2013 platinum price target, lowering it by 6%, to $1,575 an ounce, saying the change comes because they marked-to-market their estimate.

Although they adjusted their 2013 outlook to reflect the current environment, the firm is positive toward platinum, they say. The 2014 and 2015 estimates of $1,850 and $1,900 are left unchanged.