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Platinum hits record high, gold price continues to rise

Platinum rose to a record in London, buoyed by mining disruptions in South Africa, the source of almost 80 percent of global supplies. Gold also advanced.

Anglo Platinum Ltd and Gold Fields Ltd raised electricity consumption to 90 percent of normal at the end of last week after several days of power cuts. Gold Fields said its production may drop 25 percent this quarter. South Africa supplies more than a 10th of the word's gold.

"Platinum prices are also set to outperform again this year, given that inventories remain at historically low levels and supply disruptions coupled with robust demand, particularly from the auto catalyst sector, are set to keep the market balance in deficit," Barclays Capital said in a report e-mailed on Friday.

Platinum for immediate delivery rose as much as US$15.75, or 0.9 percent, to US$1,786.75 an ounce. Platinum has advanced 17 percent this year, compared with a 4.4 percent increase in the UBS Bloomberg Constant Maturity Commodity Index of 26 raw materials.

Gold for immediate delivery rose US$4.42, or 0.5 percent, to US$909.90 an ounce.

"We expect gold to trend higher through this year, hitting US$1,000 an ounce at some point," Dan Smith, an analyst at Standard Chartered PLC in London, said in a report on Friday.
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