Platinum has put together a strong rally during overnight trading and have reached the highest price level since October 19th. Many in the market thinking a US recession can still be avoided and rising hopes for an EU debt rescue deal at Wednesday's summit meeting have been seen as the main positive factors for the market. Some traders feel that the platinum market is a classic physical commodity market in need of proof that a global recession can be avoided. A favorably received private survey of Chinese purchasing managers may also be contributing to platinum's strength this morning. Euro zone Industrial New Orders during August were up 1.9%, higher than expectations and may indicate strong platinum demand from European automakers through the rest of this year.
Join the Discussion