Platinum prices climbed to their highest levels in over six years on Monday, buoyed by expectations of a wider deficit for the metal commonly used in catalytic converters to limit emissions from automobile engines.
Platinum rose above the $1,300 an ounce level for the first time since September 2014, up 4.4% to $1,312.54 an ounce by 12:50 p.m. EST.
“Investors have started to realize there’s upside potential for platinum prices, so it’s catching up to other precious metals,” ABN Amro analyst Georgette Boele told Reuters.
“Platinum will likely continue to outperform both palladium and gold, but it is unlikely to revert back to trading at a premium to gold,” she added.
Specialist materials firm Johnson Matthey recently predicted a third consecutive annual deficit for platinum this year.
Analysts also said longstanding supply issues of the metal in top producer South Africa could lend further support by potentially widening its supply deficit.
(With files from Reuters)