UNITED STATES November 28 2014 2:35 PM

NEW YORK (Scrap Register): Mitsubishi looks for platinum to post gains, especially relative to gold, on signs that European demand should pick up. Diesel-powered vehicles are popular on the continent and require platinum for catalysts.

The most recent data show that new car sales in the region increased in October, raising year-to-date car sales to 10.6 million units, some 6% higher than the same period last year.

“This is doubly positive for platinum as it coincides with the start of Euro 6 emissions legislation, which requires on average higher platinum loadings per diesel vehicle,” said analysts at Mitsubishi.

“Platinum began to rebound from deeply oversold levels against gold, having closed at parity against the yellow metal for the first time since May 2013,” they added.

Platinum’s recent support at $1,197 and two days of closing above $1,200 late last week now sets it up for further gains in the short term, with $1,259 -- 23.6% Fibonacci retracement of July to November price drop -- forming the next significant resistance level.”