“Negative sentiment on diesel engines continues to hit headlines, but continued supply side slowdown, concerns surrounding Russian sanctions, and drawdowns on existing platinum inventories have boosted prices recently,” Gold said.
Related: Choosing the Right Precious Metal ETF for the Right Job
Platinum is currently experiencing its best weekly advance since January after rising for six consecutive sessions as the U.S. imposed further sanctions on Russia, the world’s second-biggest producer, Bloomberg reports. The increased political tension between Russia and America has contributed to the rise in the white metal.
“We currently like the risk-reward for platinum over the next year, and our base-case sees platinum’s fair value near US $1,020/oz as defensive asset demand and global growth may support platinum, despite recent weakness,” Gold added.
For more information on the platinum market, visit our platinum category.