Platinum discount to Gold largest since June

UNITED STATES October 14 2016 8:44 PM
NEW YORK (Scrap Register): Platinum group metals remain near multi-month lows, with the platinum/gold discount the most since June, said Commerzbank. 

Platinum is now around $320 less than an ounce of gold, said analysts. Spot platinum fell to a nine-month low of $929.50 an ounce on Thursday, while palladium hit a three-month of $636.20 early Friday. 

Besides depreciation of the South African rand, the metals have been hurt by wide-scale selling in the futures market, Commerzbank added.

What is more, ETFs (exchange-traded funds) have already been seeing outflows for months, as was the case once again for palladium yesterday (minus 15,000 ounces). There are other demand factors that should be supportive for prices, however, said Commerzbank. 

"For example, the fact that the platinum price is low in comparison to gold should generate more demand from the jewelry industry," the bank added. “And the automotive sector is also continuing to boom." 

Commerzbank cited data from the European Automobile Manufacturers Association showing that 1.46 million new cars were registered in the European Union during September, 7.2% more than the same month a year ago the highest figure ever for any September. 

After three quarters, new EU registrations are 8% up year-on-year, and sales data have been robust in U.S. and China over the last two weeks.