April 13 (Bloomberg) — Platinum climbed to a six-month high in New York on speculation that demand for the metal will rise in Japan after the government outlined a record stimulus package to help revive the country’s economy. Palladium gained.
Japan’s Prime Minister Taro Aso’s 15.4 trillion yen ($153 billion) plan aims to revive an economy headed toward the worst recession since World War II. Including financial measures and guarantees, the effort will reach 56.8 trillion yen, Aso said in Tokyo on April 10. Platinum and palladium are mostly used in auto and truck pollution-control parts and in jewelry.
“The Japanese came out with a stimulus package and that is a big factor in the platinum market,” said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago.
Platinum futures for July delivery gained $51.70, or 4.3 percent, to $1,247 an ounce on the New York Mercantile Exchange. The most-active contract earlier rose to $1,252 an ounce, the highest since Sept. 24.
The metal may rise to $1,320 an ounce by late next month, Platt said. The most-active platinum contract has soared 32 percent this year, after tumbling 38 percent in 2008.
Palladium futures for June delivery climbed $11.25, or 4.9 percent, to $242.35 an ounce on Nymex. The metal gained 2.7 percent last week and has surged 28 percent this year.
Some investors buy platinum and palladium as alternatives to holding stocks, bonds and currencies.
“It’s up on risk appetite,” said Tom Pawlicki, a metals analyst at MF Global Ltd. in Chicago. “Chinese car sales were strong in March; prospects for U.S. car sales are improving.”
Full Story: http://www.bloomberg.com/apps/news?pid=20601012&sid=adynvjI2jUO0&refer=commodities