Platinum Around $1290 on Europe Woes

Platinum futures dropped to a five-year low on signs that European demand is faltering for the metal used in pollution-control devices in cars. Gold rebounded from an eight-month low.

In September, platinum in tumbled 8.7 percent, the most in more than two years, while a manufacturing gauge for Germany, Europe’s largest economy, slid to a 15-month low, data showed today. Italy’s government cut its growth forecast for 2014 and 2015.

In the third quarter, platinum fell 12 percent, the most in more than a year, amid signs of slowing economic growth in Europe. The region accounts for 25 percent of global demand. Holdings in exchange-traded products backed by the metal are close to a four-month low, and money managers cut their bullish wagers for three straight weeks, the longest streak in 2014.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.