Platinum futures climbed to their highest level in one week, as continued economic recovery is expected to increase demand for the precious metal heading into the new year, according to a published report.
Bloomberg reports platinum for April delivery increased by 0.8 percent to $1,346.90 on the New York Mercantile Exchange by 7:25 a.m. According to the news provider, this represented the highest gain since Dec. 18.
The increased platinum prices come as a recent survey from Bloomberg indicated platinum is expected to reach $1,650 an ounce in 2014 with a further increase in demand. The news source reports catalytic converter manufacturer Johnson Matthey Plc noted recently that demand for the metal outpaced supply by its highest level since 1999 this year.
"There's a deficit in platinum and people probably have just realized how cheap it is," Dominic Schnider, head of commodities research at the wealth management division of UBS AG in Singapore, told Bloomberg. "Unlike gold, platinum benefits from a global economic recovery."
Like the Bloomberg survey, The Market Oracle also expects platinum to have a big year in 2014. According to the news source, prices of the metal will likely continue to climb as production continues to fall in South Africa, the largest producing country in the world.
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