Spread between Platinum and Gold to widen even further: Barclays

UNITED STATES March 08 2014 11:58 AM

LONDON (Scrap Register): Barclays believes potential for the platinum/gold spread to widen further, particularly due to supply issues underpinning platinum group metals.

A strike is occurring against South African’s three major PGM producers, and there are market worries about the Ukraine conflict disrupting the flow of supplies of metal out of Russia, such as if the West imposes economic sanctions.

“Over the past week, the spread has widened from less than $100 an ounce to around $140 an ounce. If gold loses its safe-haven appeal and the strike continues in South Africa, we think, this spread could widen even further,” said analysts with Barclays.