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Commodities : Tuesday, July 28, 1987 : Platinum Leads Metals Rally

From Associated Press

Platinum led a rally in precious metal futures prices Tuesday as a weakening dollar, renewed inflationary worries and heightened tension in the Persian Gulf sent uneasy traders scurrying for “secure” investments.

“Platinum is the most thinly traded of the precious metals, and any shift in the speculative climate is most sensitively reflected there first,” said Howard Levine, first vice president with Shearson Lehman Bros. in New York.

Platinum jumped through the $600-an-ounce level early in the day at the New York Mercantile Exchange, then built steadily on the the gain while gold, silver and even copper joined in the upward surge.

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At the New York Mercantile Exchange, platinum jumped $14.90 per ounce for each contract month, except January, which rose $14.70. The contract for delivery in July settled at $610.30 an ounce.

The increase gave platinum a $30 rise over the last three trading sessions.

Analysts said investors’ worries about the potential for escalating violence in the Mideast helped fuel the rally, but they said that there are fundamentals of demand at work also.

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