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Metals Extend Yesterday’s Rally Intraday, Platinum & Palladium Reverse Gains, Gold Stays Flat

February 16, 2021 at 11:17 by Vladimir Vyun

Yesterday’s trend continued today, with metals extending their rally but gold failing to join the parade. Yet it seems that the trend may yet change as at the time of writing palladium has pulled back to the opening level and platinum reversed its gains. Market analysts explained that the risk-on market sentiment remains firmly in place. Hopes for COVID-19 vaccine rollouts and global economic recovery have been driving traders towards riskier assets, making safer ones less attractive. With global stocks continuing to rally, investors see little need to buy non-yield-bearing gold.

Other metals, on the other hand, benefited from the positive outlook due to their industrial usage. In particular, analysts are optimistic about platinum due to the usage of the autocatalyst metal by auto manufacturers to clean car exhaust fumes. On top of that, experts are worried about potential supply disruptions in South Africa, the biggest producer of platinum in the world. That can result in a global deficit of platinum in 2021, the same as in the previous two years.

Copper has been also gaining on worries about potential deficit. The mix of high demand for the industrial metal, particularly in China, and lower production to a large number of COVID-19 cases in several copper-producing South American nations can result in a global shortage of copper this year.

Futures for delivery of gold in April were about flat at $1,823.5 per troy ounce as of 11:14 GMT on COMEX today. Silver for delivery in March climbed by $0.51 (1.87%) to $27.84 per ounce. Spot price for platinum fell by $2.99 (0.23%) to $1,302.34 per ounce, while palladium has been trading sideways at $2,390.04 per ounce. March copper jumped by $0.041 (1.08%) to $3.829 per pound.

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