“Precious metals have continued to climb even after the Federal Reserve raised borrowing costs in December for the third time in 2017 as traders sought a store of value. The dollar is trading near a three-year low against a basket of 10 currencies,” according to Bloomberg.
Commodities are denominated in dollars, meaning a weak greenback often triggers higher commodities prices. Data confirm professional speculators are bullish on platinum.
“In the week ended Jan. 16, money managers raised their net-long position, or the difference between bets on a price increase and wagers on a decline, by 79 percent to 19,806 futures and options, according to U.S. Commodity Futures Trading Commission data released Friday. That’s the highest since mid-September,” reports Bloomberg.
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