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Platinum Continues to Gain on Gold

February 14, 2013 at 4:57 by Vladimir Vyun

Platinum was rising on supply concern while gold was falling, increasing spread between the metals. In the previous years, platinum was not in favor, losing to gold and eventually becoming cheaper. Nowadays, regain platinum its advantage and will likely increase it in time.

The major reason for gains of platinum was concern that labor strikes would hurt output from South Africa, the biggest producer in the world. The metal has gained 13 percent this year after Anglo American Platinum Ltd. announced its plans to idle shafts in the country. Other African countries were not friendly for mining companies either. Zimbabwe seized about 69,000 acres of land from Zimplats Holdings Ltd.

Gold, on the other hand, had no such bullish story. In fact, the precious metal looks keen to fall whatever news hit the market. It is not surprising that gold is losing to platinum and things are not likely to change anytime soon.

Spot price for platinum advanced $4.35 (0.29 percent) to $1,726.10 per troy ounce as of 4:07 GMT today. At the same time, gold futures for delivery in April retreated $0.5 (0.03 percent) to $1,644.70 per ounce on COMEX.

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