UNITED STATES May 04 2016 7:20 AM
NEW YORK (Scrap Register): Platinum has become the best-performing hard commodity for the year to date after the ferrous metals complex and silver, said BMO Capital Markets.
“Platinum prices were a precious metal laggard -- like silver -- and are now up 23% YTD, just ahead of gold at 22%,” BMO said. “Even an 8% strengthening in the rand YTD doesn’t fully offset the gains in the USD (U.S. dollar) platinum price. Platinum does not benefit from the safe-haven demand that gold possesses, and some respite from improving auto sales is likely helping sentiment.”
Speculative positioning in the futures market suggests there is some conviction behind platinum, BMO said. “Ultimately, we believe the markets are looking for laggards in a weaker USD scenario, and commodities in general fit that bill,” BMO added.
“Our view remains that we are bouncing along the bottom of the commodity cycle for metals, with reflationary efforts in China driving much improved sentiment from six months ago,” BMO noted.