Commodities : Platinum Futures Soar

Platinum futures jumped higher Thursday, leading a precious metals rally amid renewed jitters over events in the Persian Gulf and reports the Japanese had stepped up platinum buying for industrial and investment purposes.

In other markets, cotton soared to record highs; energy futures finished mostly lower as profit-taking trimmed early gains; meat futures rose again over a continuing shortfall in stored product as well as hogs coming to market; and soybean and grain futures prices rose on forecasts of hot, dry weather.

After retrenching Wednesday with a nearly $5-an-ounce drop, platinum renewed its sharp rise of previous sessions.

On the New York Mercantile Exchange, platinum settled $18.40 to $18.90 higher, with the contract for October at $624.80 an ounce.

“The market is very strong and the simplest explanation is that the metals are very cheap and very secure relative to other assets,” said Rick Levin, general partner with Lazard Freres & Co.

Thursday’s rise was fueled partly on continued concern over the return trips through the Persian Gulf about to be undertaken by U.S.-escorted tankers.

Gold settled $4.50 to $4.60 higher at the New York Commodity Exchange, with August at $462.20 an ounce.