Current Price Of Platinum
January 1, 2012 by staff
Current Price Of Platinum, Precious metals prices fell dramatically on Thursday as lack of confidence in the European economy encouraged investors to switch out of gold and into the US dollar. The flight to cash was made worse by traders and investors continuing to lock in profits and bolster cash positions in the run-up to year-end.
By 2.30pm gold was almost US$28 or 1.78% lower at $1,555.58 and platinum was $28.50 or 2% lower at $1,349.50 an ounce.
Silver was also lower at $26.43, which is more than $2 below its open this week.
This is after gold was off as much as 2.5% on Wednesday when it tested support around US$1550 an ounce and the more industrial metals saw more substantial pressure with platinum down as much as 3.5% and palladium 4.4%. Silver was down over 6% at its lows.
In the meantime the gold-to-silver ratio – which measures how many ounces of silver are needed to buy an ounce of gold – hit levels last seen in October 2010 and threatened to retest its historical average around 60.
While Jim Wyckoff of Kitco said “fresh, serious near-term technical damage” had been inflicted on gold this week it was the heavy long-liquidation pressures that were driving prices lower.
“It’s important for gold market watchers to remember that there are two trading days left in 2011,” said Wyckoff, adding that while the precious metals markets were seeing active price action late this week, daily trading volumes were still on the lighter side as many market players were on holiday.
“In other words, it can be argued the downslide in precious metals prices late this week is as much or more a money/ledger matter than it is from fresh market fundamentals,” he suggested.
As well as the weakness in the precious metals bears were also evident across the wider financial spectrum after data showed the European Central Bank’s balance sheet had increased to a record EUR2.73 trillion following a surge in bank lending.
James Moore, ananlyst at FastMarkets, said given the thin conditions, proximity to year-end and the weak technical picture the complex as a whole remained vulnerable to further long liquidation, particularly with cash liquidity concerns high on the agenda.
Moore said while silver in particular could see greater pressure versus gold after the ratio broke above trendline resistance on Wednesday, it was worth remembering that despite the recent correction the precious yellow metal was still on course to post its eleventh consecutive year-on-year gain.
“Given the ongoing debt problems facing many economies, record low interest rates and the highs in gold this year, those with a longer-term outlook could view current levels as a buying opportunity,” Moore said.
The spot price of gold has already fallen 12.1% this month but despite its recent decline from its September all-time high of $1,920,anlysts still say that it is looking better than other metals in the precious sector.
Gold has gained over 10% in 2011 versus an 11% year-on-year contraction in silver prices.
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