Monday, November 20, 2006


Platinum Booms On Demand Report

Bloomberg reports on the metals. "Platinum gained the most in more than six years in London on concern demand for the metal used in car catalysts and jewelry may outstrip supply. It was the second-biggest move of any commodity worldwide."

"Platinum for immediate delivery rose 4.9 percent to $1,248 an ounce as of 5:15 p.m. in London. Earlier, it climbed as much as 6.3 percent to $1,264.50. A close at that price would give the metal the biggest one-day gain since May 1, 2000. It traded at a record $1,340 on May 12. Palladium for immediate delivery in London gained $4, or 1.3 percent, to $322.50 an ounce."

"Supplies of the metal also used in electronic devices will rise 5.3 percent to a record 7 million ounces in 2006, Johnson Matthey, the world's largest distributor of platinum group metals, wrote in a report. 'The fundamentals for platinum are very strong, the market is taking a positive signal from the Johnson Matthey report,' James Moore, a precious-metals analyst with, said in a telephone interview today. 'The funds are ramping it up,' Moore said, adding that there was also 'some industrial buying.'"

"On Nov. 3, platinum surged as much as 5.4 percent in London on speculation that an exchange-traded fund linked to the price of the precious metal may be introduced."

"Should a platinum ETF go ahead, this may add 'between 5 and 15 percent,' to the price, said Wolfgang Wrzesniok-Rossbach, head of marketing and sales at Heraeus Metallhandels GmbH in Hanau, Germany, which owns five precious-metal refineries globally."

From MarketWatch. "Gold retreated late in Monday's regular trading session to close lower as strength in the U.S. dollar dulled the precious metal's attraction as a safe-haven investment. The dollar rose against the euro and yen Monday, after a report showed leading economic indicators for September were revised sharply higher."

"Gold had earlier found some support on the back of platinum's gains 'but for the large part has been pretty lackluster, with two-way interest confining the metal to a $5 range between $622 and $627,' said James Moore."

"Gold for December delivery closed down 40 cents at $622.10 an ounce, retreating from an earlier high of $627.50 even. December silver futures shed 6 cents to close at $12.74 an ounce after trading as high as $13 earlier. 'Despite the recent buying interest from speculators and investors, silver is showing signs of running out of steam and needs to clear the $13.15 to $13.25 chart congestion to avoid slipping back toward $12.40,' said Moore."

"And 'with U.S. markets shut for Thanksgiving at the end of the week and only limited economic data from the U.S., range play [for gold] is likely to be the main theme,' he said."

"The dollar's 'fortunes are beginning to exert an influence as the lessening role of the dollar in international trade (as a reserve currency too) portends a crisis as excess U.S. dollars threaten its stability,' said Julian Phillips, analyst at"

"Canada's dollar set a seven-month low as crude oil prices declined and a government report showed wholesale trade in September fell more than economists expected."

"Statistics Canada said wholesale sales fell the most in more than a year. The Canadian dollar tends to follow the price of commodities, which account for about 54 percent of the country's exports and 12 percent of its C$1.09 trillion ($950 billion) economy."

"'It's easy to be bearish' on the Canadian dollar given the performance of commodities, said David Solin, a partner at Foreign Exchange Analytics in Essex, Connecticut. 'Especially at the rate commodity prices have been falling, a lot of people climb on board.'"

"The U.S. dollar has fallen against 15 of the 16 primary currencies tracked by Bloomberg during the third quarter. The Canadian dollar is the only one that has weakened against the U.S. dollar, declining 2.5 percent."

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