FX.co ★ Finest hour of precious metals: price of platinum is skyrocketing

Prices on the precious metals market soared on Tuesday morning. Some sectors even noted a rapid and significant increase. Platinum, in particular, was able to reach its maximum levels, which were last recorded more than six years ago.

The price of gold futures contracts for April delivery on the electronic trading floor in New York rose 0.19%, to $1,826.7 per troy ounce. At the same time, support for the metal amounted to $1,810.1 per troy ounce, while resistance went to the region of $1,848.6 per troy ounce.

Silver futures contracts for March delivery also rose, but at a faster pace at 2.69%, which sent the price level at $28.062 per troy ounce.

The price of platinum futures contracts has moved significantly higher today - by 1.05%, or $143.8 an ounce, to $1,326.5 per ounce. A day earlier, the precious metal was able to increase its value to the maximum levels, which were last noted as early as the beginning of autumn 2014, that is, up to $1,333.55 per ounce.

Copper futures also gained 0.37%, pushing it up to $3.8407 per pound.

The main attention of market participants is now directed towards possible prospects for overcoming the crisis of the global economy and the economies of individual countries. The reason for the positive is the active conduct of a mass vaccination campaign against coronavirus infection. At least, there is already an increase in the demand for raw materials, especially metals. At the same time, according to analysts at Commerzbank, supply remains rather limited: prices have skyrocketed, which was already predicted late last year.

The value of platinum has already increased substantially as demand for it has skyrocketed. Most industrial enterprises are preparing for a large-scale lifting of quarantine restrictions, which means that more metal will be needed to expand production. Recall that the main application of platinum in the industrial sector is associated with the production of catalysts for cars. The demand for cars is expected to increase significantly soon, which means that more platinum will be needed for their production. The number of heavy vehicles in China is already growing, forcing manufacturers to purchase more platinum in the region.

Most analysts have already noted that, soon, many enterprises may face a platinum deficit in production. And this, in turn, risks escalating into a global problem. On the one hand, for precious metals, this will mean a rapid rise in prices, on the other hand, an active search for an alternative will begin. At the same time, the ecology of many regions will suffer.