Vancouver – Investor concern over weak demand for autocatalysts, electronics and jewellery sent the price of platinum to its lowest levels in nearly two years.
Spot platinum and palladium prices imploded this week as a wave of selling overwhelmed the market. The initial short covering and buying associated with the September 11 terrorist attacks in the United States gave way to the economic reality that industrial demand will contract.
Driving the decline is a projected 25% drop in U.S. automobile sales for September prompting many domestic manufacturers to close production plants in the coming weeks. On the global front, Ford Europe has already announced plant closures and job cuts. GM Europe said that it would cut production by 350,000 vehicles by 2003.
Platinum sliced through support near US$475 per oz. and then again at US$460 per oz., touching a 22-month low of US$415 per oz. on Tuesday. The price of palladium followed platinum lower ending trade at US$334 per oz.
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