Platinum, palladium prices plunge on NYMEX

New York (Platts)--22May2006

With the gold market showing further weakness and the funds reducing
their positions in other commodities, the PGMs have hitched onto the
bandwagon. Platinum and palladium are heading south again on the NYMEX in a
continuation of last week's sell-off, according to trade sources.

The nearby July platinum futures contract plunged $28.40 to $1,285/oz at
11:12 EDT (14:12 GMT) on the NYMEX Monday, as the downward pressure on
precious metals continued. Following in the footsteps of its sister metal,
June palladium plunged $11.80 to $340/oz.

One analyst suggested that there was nothing new about the decline in
platinum after gold hit limit down on TOCOM overnight.

"It's just fund liquidation, and the timing and the extent of the
liquidation depends on what's in their plans," said the analyst, adding: "They
decide when they feeling like getting in or out of the market."

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