Platinum looks to all time highs as dollar slide continues

London (Platts)--12Aug2005

Platinum, trading around a 15 month high, was perky amid good volumes in
European trade Friday, as traders looked towards US data and the dollar for
direction. Platinum was fixed at $924/oz Friday morning, up $13 on its
previous fix Thursday afternoon. Platinum was bolstered by a weaker dollar in
New York but buying was particularly stepped-up in overnight Asian trade, a
UK-based trader said. Gross domestic product data in Japan came in quite
positive and this saw the yen post further gains on the dollar. "We've seen
quite a bit of interest today so far and volumes don't seem to be as light as
they have been previously," the trader said, adding: "We could see even higher
prices when the US traders come in. Some may have to short cover and this
could prompt a test higher." Initial levels of resistance can be seen around
$932/oz, however $935-940/oz should provide most difficulty on the upside.

However, interest in pushing platinum higher must be considerable as analysts
had previously described resistance at $920/oz as solid. Analyst with
thebulliondesk.com, James Moore said Friday that "Like gold, platinum is now
looking to target its all-time high of $942/oz with interim resistance pegged
at $932-937/oz." Standard Bank suggests that "If the break above key
resistance pegged at $915/oz is confirmed on a closing basis it will set up a
test of resistance located between $935/oz and $940/oz, while on the downside
$900/oz now provides good support." In the news, a platinum strike in South
Africa was averted when the National Union of Mineworkers accepted a 6-6.5%
increase in wages from Implats.

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