While gold continues to rule range-bound, it could be a wise move to shift investments to platinum.
Prices of platinum have hit a four-month high but signs are that it could continue to zoom. Data from Bloomberg showed that holdings in platinum exchange-traded products were up at a record 51.46 tonnes.
That explains why platinum had gained 11 per cent this year, while gold has dropped marginally.
According to Barclays Plc, platinum production is expected to drop 2.7 per cent this year to 5.68 million ounces, the lowest in 13 years. This will put pressure on stocks available in the market and scrap.
According to Bloomberg data, an ounce of platinum can buy 1.0267 ounces of gold today, the most since August 29, 2011.
In early trade at Singapore, platinum ruled at $1,714.25 an ounce. In contrast, spot gold ruled at $1,673.65 an ounce, while gold for delivery in April quoted at $1,672.60.
In the domestic market on Tuesday, gold for jewellery (9.5% purity) closed higher at Rs 30,400 for 10 gm, while pure gold finished at Rs 30,530.
The oils and oilseeds complex will continue to rule firm with soyabean gaining further on the Chicago Board of Trade (CBOT). The latest reason for the rise is speculation that rain in key Brazilian State will delay exports from the South American nation.
On CBOT, soyabean March contracts almost touched $15 a bushel before closing at $14.90. On the Bursa Malaysia Derivatives Exchange, crude palm oil April contracts dipped to 2,549 ringgit ($826) a tonne on Tuesday.
Lack of exports continue to put pressure on the grains complex leading to fall in wheat and corn (industrial maize) prices.
Overnight on CBOT, corn March futures fell to $7.30 a bushel, while wheat declined to $7.62 a bushel. Though forecast put Argentina’s corn harvest two million tonnes lower, Brazil could make up the loss a bit.
Crude oil is likely to gain on lower distillate stocks. Brent crude March contracts ruled firm at $116.78 a barrel, while NYMEX crude contracts for the same month quoted at $96.69.
This could see natural rubber rule firm as its alternative synthetic rubber derived from crude oil will gain.