Latest news with #AnushreeMukherjee
Yahoo
a day ago
- Automotive
- Yahoo
Platinum surges, palladium lags on narrow demand profile
By Anushree Mukherjee and Kavya Balaraman (Reuters) -Platinum and palladium prices have both rallied this month, notching a more than four-year and seven-month high respectively, but analysts say they remain more cautious about the outlook for palladium due to its narrower demand base. Spot platinum was trading at $1,272.45 per ounce as of 1545 GMT on Wednesday, its highest level since February 2021, and has risen 41% this year on supply concerns, renewed investor interest following London Platinum Week in May, and increased jewellery demand as high gold prices drive consumers to cheaper alternatives, analysts say. Spot palladium, meanwhile, was trading at $1,078.62/oz, its highest level since November 2024, and has gained 18% this year, but has struggled to reach the high of $1,244.75 hit in October 2024. "The biggest factor is likely the wider appeal which platinum enjoys. Platinum's uses are more diverse, spanning industrial applications, jewelry, and investor demand," said Zain Vawda, market analyst at MarketPulse by OANDA. "This diversification shields platinum from the headwinds palladium faces, such as declining long-term demand from the traditional automotive market due to the EV transition." Palladium is mainly used in catalytic converters for gasoline vehicles, while platinum has broader uses in diesel catalytic converters, jewellery, industrial applications, and emerging hydrogen technologies. PALLADIUM PRICES LAGGING Palladium could be considered a "one trick pony", with 90% of its demand coming from car manufacturers, Bank of America said in a note last week. "China's rising EV penetration rates are particularly damaging because it means that palladium-intensive cars with a gasoline engine are now being quickly displaced," the note added. The transition to EVs will also affect platinum in the medium term, but to a lesser extent, analysts told Reuters. "Large commercial vehicles will likely use larger amounts of platinum (relative to palladium) and these vehicles will be slower to electrify. Over time, the hydrogen economy will also absorb some platinum, limiting the downside risk on platinum versus palladium," said Nitesh Shah, commodities strategist at WisdomTree. Global sales of battery-electric vehicles and plug-in hybrids rose to 1.5 million in April. Sales in China were up 32% from the same month of 2024 to 0.9 million vehicles. PLATINUM RALLIES Platinum, meanwhile, is expected to be moderately supported over the next six to 12 months, although the upside may be capped without a clear rebound in auto demand or meaningful acceleration in hydrogen-related applications, said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Platinum jewellery demand is likely to continue benefiting from high gold prices, analysts said. "We believe that platinum will retain recent gains and could rise a little further as gold and silver gain. We are less confident that palladium will go much higher until turbulence in the auto industry settles," Shah added. Gold has surged 27% this year, touching multiple record highs, while silver has risen 26% in 2025. Sign in to access your portfolio
Yahoo
a day ago
- Automotive
- Yahoo
Platinum surges, palladium lags on narrow demand profile
By Anushree Mukherjee and Kavya Balaraman (Reuters) -Platinum and palladium prices have both rallied this month, notching a more than four-year and seven-month high respectively, but analysts say they remain more cautious about the outlook for palladium due to its narrower demand base. Spot platinum was trading at $1,272.45 per ounce as of 1545 GMT on Wednesday, its highest level since February 2021, and has risen 41% this year on supply concerns, renewed investor interest following London Platinum Week in May, and increased jewellery demand as high gold prices drive consumers to cheaper alternatives, analysts say. Spot palladium, meanwhile, was trading at $1,078.62/oz, its highest level since November 2024, and has gained 18% this year, but has struggled to reach the high of $1,244.75 hit in October 2024. "The biggest factor is likely the wider appeal which platinum enjoys. Platinum's uses are more diverse, spanning industrial applications, jewelry, and investor demand," said Zain Vawda, market analyst at MarketPulse by OANDA. "This diversification shields platinum from the headwinds palladium faces, such as declining long-term demand from the traditional automotive market due to the EV transition." Palladium is mainly used in catalytic converters for gasoline vehicles, while platinum has broader uses in diesel catalytic converters, jewellery, industrial applications, and emerging hydrogen technologies. PALLADIUM PRICES LAGGING Palladium could be considered a "one trick pony", with 90% of its demand coming from car manufacturers, Bank of America said in a note last week. "China's rising EV penetration rates are particularly damaging because it means that palladium-intensive cars with a gasoline engine are now being quickly displaced," the note added. The transition to EVs will also affect platinum in the medium term, but to a lesser extent, analysts told Reuters. "Large commercial vehicles will likely use larger amounts of platinum (relative to palladium) and these vehicles will be slower to electrify. Over time, the hydrogen economy will also absorb some platinum, limiting the downside risk on platinum versus palladium," said Nitesh Shah, commodities strategist at WisdomTree. Global sales of battery-electric vehicles and plug-in hybrids rose to 1.5 million in April. Sales in China were up 32% from the same month of 2024 to 0.9 million vehicles. PLATINUM RALLIES Platinum, meanwhile, is expected to be moderately supported over the next six to 12 months, although the upside may be capped without a clear rebound in auto demand or meaningful acceleration in hydrogen-related applications, said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Platinum jewellery demand is likely to continue benefiting from high gold prices, analysts said. "We believe that platinum will retain recent gains and could rise a little further as gold and silver gain. We are less confident that palladium will go much higher until turbulence in the auto industry settles," Shah added. Gold has surged 27% this year, touching multiple record highs, while silver has risen 26% in 2025.
Yahoo
05-06-2025
- Business
- Yahoo
Silver surges past $35/oz level to hit a more than 13-year high
By Anushree Mukherjee (Reuters) - Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said. Spot silver rose 2.5% to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08. "We have been expecting silver to close its performance gap with gold for some time. The metal has firm fundamentals, including being in a supply deficit and industrial demand being robust," said Nitesh Shah, commodities strategist at WisdomTree. GOLD-SILVER RATIO The gold-silver ratio, which reflects how many ounces of silver are needed to buy an ounce of gold, currently stands around 94 - down from 105 in April, when it reached its highest level since May 2020. A lower gold-silver ratio means silver is gaining value relative to gold. Given silver's recent underperformance against gold, "it looks to me that there could be some ratio trading going on now that it's dipped below the 100 level," StoneX analyst Rhona O'Connell said. ROBUST INDUSTRIAL DEMAND Known both as a safe-haven asset and a vital industrial metal, silver has surged 24% so far in 2025. Industrial uses account for more than half of global silver demand, according to the Silver Institute industry association. That demand has remained robust despite broader industrial headwinds in the past few years, said Shah, due in part to its role in solar and electrification. "With all precious metals in positive territory, I guess they are benefiting from similar factors - weaker US economic data supporting the case of rate cuts, which should support industrial demand at a later stage," said Giovanni Staunovo, UBS analyst. Meanwhile, gold has surged about 29% in 2025, shattering records multiple times on safe-haven demand, expectations of U.S. rate cuts and robust central bank purchases. SUPPLY DEFICIT AND LONG-TERM OUTLOOK Silver is facing its fifth consecutive year of a structural market deficit, although the deficit is expected to narrow by 21% in 2025, according to the Silver Institute industry association. "As silver is largely a by-product of mining for other metals, the elevated price will not necessarily drive a lot of new supply. So supply deficit markets may be maintained for longer," Shah added. "In the long-term, rising demand for silver as an industrial material means prices could reach $40 or even $50 per ounce," said Fawad Razaqzada, market analyst at City Index and Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
Silver surges past $35/oz level to hit a more than 13-year high
By Anushree Mukherjee (Reuters) - Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said. Spot silver rose 2.5% to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08. "We have been expecting silver to close its performance gap with gold for some time. The metal has firm fundamentals, including being in a supply deficit and industrial demand being robust," said Nitesh Shah, commodities strategist at WisdomTree. GOLD-SILVER RATIO The gold-silver ratio, which reflects how many ounces of silver are needed to buy an ounce of gold, currently stands around 94 - down from 105 in April, when it reached its highest level since May 2020. A lower gold-silver ratio means silver is gaining value relative to gold. Given silver's recent underperformance against gold, "it looks to me that there could be some ratio trading going on now that it's dipped below the 100 level," StoneX analyst Rhona O'Connell said. ROBUST INDUSTRIAL DEMAND Known both as a safe-haven asset and a vital industrial metal, silver has surged 24% so far in 2025. Industrial uses account for more than half of global silver demand, according to the Silver Institute industry association. That demand has remained robust despite broader industrial headwinds in the past few years, said Shah, due in part to its role in solar and electrification. "With all precious metals in positive territory, I guess they are benefiting from similar factors - weaker US economic data supporting the case of rate cuts, which should support industrial demand at a later stage," said Giovanni Staunovo, UBS analyst. Meanwhile, gold has surged about 29% in 2025, shattering records multiple times on safe-haven demand, expectations of U.S. rate cuts and robust central bank purchases. SUPPLY DEFICIT AND LONG-TERM OUTLOOK Silver is facing its fifth consecutive year of a structural market deficit, although the deficit is expected to narrow by 21% in 2025, according to the Silver Institute industry association. "As silver is largely a by-product of mining for other metals, the elevated price will not necessarily drive a lot of new supply. So supply deficit markets may be maintained for longer," Shah added. "In the long-term, rising demand for silver as an industrial material means prices could reach $40 or even $50 per ounce," said Fawad Razaqzada, market analyst at City Index and Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Gold hits two-week high as investors grow cautious amid US debt fears
By Anushree Mukherjee (Reuters) - Gold prices rose to a two-week peak on Thursday as investors leaned toward the safe-haven asset amid mounting concerns over the U.S. government's growing debt and soft demand for 20-year Treasury bonds, highlighting low appetite for U.S. assets. Spot gold gained 0.8% to $3,340.53 an ounce as of 0300 GMT, after hitting its highest level since May 9. U.S. gold futures rose 0.9% to $3,341.90. The dollar is hovering near a two-week low hit in the previous session, making greenback-priced gold cheaper for holders of overseas currency. [USD/] "Gold's bullish reversal is supported by a weaker U.S. dollar and lingering stagflation risks in the U.S. economy," said Kelvin Wong, senior market analyst, Asia Pacific at OANDA. The Republican-controlled U.S. House of Representatives Rules Committee on Wednesday voted to advance President Donald Trump's sweeping tax-cut and spending bill, setting the stage for a vote on the House floor in the coming hours. The U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds on Wednesday, which is weighing not just the dollar but Wall Street as well, with traders already jittery after Moody's cut the U.S. triple-A credit rating last week. [MKTS/GLOB] Gold is seen as a safe investment amid economic and geopolitical turmoil and thrives in a low-rate environment. On the geopolitical front, the fifth round of nuclear talks between Iran and the United States will take place on May 23 in Rome, Oman's foreign minister said on Wednesday. Spot silver rose 0.5% to $33.54 an ounce, platinum gained 0.1% to $1,077.33 and palladium lost 0.6% to $1,031.46. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
