Assets held in platinum-backed ETFs have now risen for six weeks in a row. That’s the longest weekly streak since November, and a sharp reversal of a historic outflows that had hit the metal earlier this year.
Still, strong investor demand hasn’t been enough lately to spur higher platinum prices. As Bloomberg reports, platinum has actually fallen amid higher interest rates and physical demand concerns:
Platinum, which climbed through the first two months of the year, has dropped this month amid prospects for higher U.S. interest rates and speculation that demand will slip for the metal used in auto pollution-control devices. ETF investors are looking beyond the short-term price weakness and focusing on the outlook for shortages that could propel prices over the longer term, according to Maxwell Gold at ETF Securities LLC.
The ETFS Physical Platinum Shares (NYSE:PPLT) saw its biggest weekly inflow in a month last week, adding $9.2 million.
PPLT was trading at $93.00 per share on Tuesday morning, down $0.01 (-0.01%). Year-to-date, PPLT has gained 7.63%, versus a 6.13% rise in the benchmark S&P 500 index during the same period.