BLBG: Platinum, Palladium Gain as Improved Economy May Boost Demand
By Halia Pavliva
Dec. 14 (Bloomberg) -- Platinum rose the most in almost two weeks and palladium gained on speculation that more of the metals will be used to make auto parts and jewelry as the economy recovers from the worst recession since World War II.
Abu Dhabi provided $10 billion to avert a default by Dubai’s Nakheel PJSC and most stocks rose from Shanghai to New York. The MSCI World Index of equities advanced for a third straight session.
“The talk is that the positive economic news of late infers increased consumption from the industrial and jewelry markets,” Miguel Perez-Santalla, a Heraeus Precious Metals Management sales vice president in New York, said in a report.
Platinum futures for January delivery rose $24.30, or 1.7 percent, to $1,447 an ounce on the New York Mercantile Exchange, the biggest one-day gain since Dec. 1. The most- active contract has climbed 54 percent this year.
Palladium futures for March delivery advanced $6.15, or 1.7 percent, to $368.30 an ounce. The metal has risen 95 percent in 2009. Some investors buy the metals as a store of value when the dollar falls and sell them when it gains.
Platinum and palladium is used to make emission-control devices for the automobile industry.
To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.
