25th February 2013 Weekly Bulletin

Johnson Matthey London Base Prices at 0800 hrs, $/oz:
 

This week started with the downgrading of the UK economy and hopes for a positive result in the Italian election; both leading gold higher despite the strong dollar. By Tuesday, the Euro dropped on the back of a closer than anticipated call in Italy, with potential for political instability and civil unrest, and saw equities and commodities move southward and platinum momentarily trade at a discount to gold. Gold was resurgent in the middle of the week after Ben Bernanke visited Congress and defended the Fed's monetary policy, but the rally was short lived as speculator holdings were liquidated and the price tested $1590. By the end of the week the official Chinese PMI data suggested a slowing down in its manufacturing sector, whilst the strong dollar still had the precious metal complex on the defensive.

Platinum

Platinum bounced around the $1600 level and struggled to maintain any direction this week. In the last two weeks it has given up 10% of its value, only cushioned by strong buying in the dips in the Far East, and any premium over gold has all but disappeared. The industrial metals are facing extreme pressure from currency and a quiet South Africa has provided little support, with the only significant news being that the AMCU has joined other mineworkers' unions and signed an accord aimed at providing peace and stability in the mining sector. The strength in the dollar ensured that platinum followed gold below $1600 and ended the week at $1580 in London.

Palladium

Palladium stubbornly held on to the $740 level for most of the week and appeared to be waiting for January car sales data for any direction. However, like its sister, it succumbed to the pressure provided by currency and was testing $720 by Friday.

Rhodium 

Much lower buying interest from the Far East saw rhodium just about hold on to $1250 this week.

Johnson Matthey, 
Orchard Road, 
Royston, 
Hertfordshire SG8 5HE, 
United Kingdom