Like the rest of the precious metals markets, platinum prices came under heavy pressure during overnight trading but the April contract was able to recover a large portion of those losses over the past few hours. The platinum market did receive news of rising physical production at a key platinum producer earlier in the week, which suggests for some traders that platinum prices may be reacting more to changes on the demand side of the equation. Many traders feel that the platinum market remains under pressure recently because of a tempering of Chinese growth expectation, but other traders feel that the recovery pace of the US economy may also be weighing on platinum prices. The Japanese CPI during December was down 0.4% year-on-year, in-line with expectations but the 22nd month in a row of deflation which may stimulate platinum investment demand from Japan during the near future.
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