Historically, platinum prices have exhibited a strong correlation the South African rand currency – as the ZAR appreciates, the higher costs of production and lower U.S.-dollar-denominated platinum prices would put pressure on miners, causing slowdowns in production.
“Platinum was the weakest of the four major precious metals last year as environmental concerns reduce demand for diesel-powered automobiles. By contrast, equity market turmoil and an increasingly dovish Federal Reserve have supported gold and silver, while palladium has benefited from its use in vehicles that run on gasoline,” reports Bloomberg.
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