Morning Platinum Market Report 10/5

  on October 05 2012 10:22 AM

Hong Kong shares managed to extend to yet another gain on the day to finish the week out on a very positive track. Apparently Chinese auto sales were positive with BMW posting a 55% gain in auto sales for September. European stocks were up slightly in anticipation of something positive from the US Non Farm payroll report later in the trading session.There has been some buzz that the non farm payroll report in the US will see some upward revisions to prior months data today and seeing the current month come in above +120,000 would probably be enough to leave a risk-on vibe in place today.The markets in general didn't seem to get much of an additional lift from the BOJ meeting, perhaps because there has been a flurry of central bank meetings this week, or the trade is somewhat on hold ahead of the US data.To the overnight highs January platinum prices forged a rally this week of roughly $85 an ounce and that upside action came in the face of a fresh record high in the Non-commercial and Non-reportable net long positioning last week. With violence seen throughout the South African mining sector this week and a generally positive risk-on vibe provided by positive equity market action this week the gains in platinum prices were at least partially justified. However, the platinum market is probably poised to post yet another record spec positioning in the COT report and that could make the non farm payroll result later this morning even more crucial. In other words, the bull camp probably doesn't want to see soft economic data ahead of the weekend, especially after extending on the upside for most of this week.On the other hand, platinum mining companies seem steadfast in their opposition to significant wage increases and the miners in turn have already reacted violently to heavy handed security moves and that probably ups the ante in the negotiations. It is also possible that a lack of definitive easing action from the BOJ overnight, has contributed to the corrective track early in the Friday trade. 

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