Platinum scales 6-1/2-year peak on strong investment demand

Platinum scales 6-1/2-year peak on strong investment demand

BENGALURU: Platinum extended its rally to a near 6-and-a-half-year high on Tuesday as investors bet the autocatalyst would benefit from a likely pick up in global economic activity and a push for clean energy technology.

Platinum, used in catalytic converters for vehicles, was up 0.1 percent to $1,304.06 per ounce at 0944 GMT, having earlier hit $1,336.50, its highest since September 2014.

Prices have rallied as much as 25.1 percent this year. The surge "has been triggered by very strong investment demand," said UBS analyst Giovanni Staunovo. Investors are looking for opportunities in platinum "because of positive stories down the road" including its substitution for palladium in new catalytic converters from next year and prospects for its use in green hydrogen technology, Staunovo added.

Investors also kept close tabs on the potential roll-out of Johnson & Johnson's COVID-19 vaccine in top platinum producer South Africa. "A swift recovery in mine supply and restart of Anglo's (American Platinum) smelter to refine the stockpile of unprocessed platinum could pause this rally," said Soni Kumari, a commodity strategist with ANZ.

But "with China implementing Phase 6 standard for both gasoline and diesel vehicles from January 2021, Platinum Group Metals loadings will be strong," she added, referring to