Aug. 21 - Supply issues in South Africa have pushed platinum prices sharply higher, but the rally may be about to fizzle out. Demand is weak and end-users have plentiful stocks. Gold is also close to peaking.
Political and civil unrest and South Africa culminating in the depths of that to force striking miners last week. -- -- to stop the price of platinum. Supply constraints remain an issue but prices may be close to leveling types of punching and gave on this is today's. Market pulse well joining me now here in the studio is John -- she's tracks at precious metals correspondent. You know Reuters John. Platinum has had a good -- a closed above the hundred day moving average. The first thing for months yesterday. But you. Don't think there's much -- they left in this. -- -- it does very much depend on -- the situation develops into Africa percent to planners have a very good round site on the back of the year at the bottom as we sit with who and on the moment and the response at least those week. It's rose about 5%. And it had its best week since February which is is pretty positive. For the national. But. Was still looking at a -- we fundamental picture in terms of ounces lost from last week's action that they did that that wasn't really too much of an impact. Setting nothingness pennant and the acceptance of expectancy and this game. Plus the supplying these supply constraints may continue for awhile but sat. What about the other site about mentioned that the mind that last fall in office. Accidentally and that's really what's what was having a bigger impact on platinum prices at the -- to what's been keeping them relatively sluggish this year. Does the biggest consumers of platinum on European comic has and to do is that telling me that they have until -- already they have they have good stokes. I'm demand for the impart cause remains pretty muted so that they just they just don't need to teach -- and market human. On the demonic and so weak and it's going to be very tough for the supply side to them to to rebalance. And Cheney truly the minds across the years has been stalled. Not quite so strong that. I hit it it's it's it's still looking okay but but -- it's it's over the driver of the market. Okay how does the price of plots and -- fool platinum fits in in the draw that precious metals. -- context particularly these vehicles. Well sunny the big -- insulin platinum last week did. Did did did you get some benefit to go to we've seen a -- Verizon and -- Hutchison in recent sessions. That coming up towards the and of their recent range today at -- about the 1625 level. And then the confetti healthy but it has he said that they gonna be range bound until we see some clear -- from central banks from the ECB and the fact. On much publicity. I had just a financial before we came on how to look at -- tackles on golden boat approaching the 200 day moving average and on 1643. Does how the moment and sit take. Well we we do face some some heavy pressure coming up in gold the sixteenth as -- 1640 love this woman that's the -- has been trying and failing to get above Cincinnati team. And it's really gonna have to tapes is he's a good drive has to to push it through that level and that -- an appointment. Okay John thank you very much. How much -- sent to Jenn hobby precious metals correspondent here at Reuters. But so for an -- but do watch us at this time every weekday from market pulse a look at what's moving on financial markets and -- I'm Jamie me give -- this is Reuters.