Monday, October 3, 2016
Platinum is the leader today but not in a good way.
Platinum is the leader today but not in a good way. The National Union of Mineworkers (NUM) signed a 2- year wage agreement with Impala Platinum Limited (Refineries) ending the threat of strike that was hanging around in the background. That news along with slipping auto sales numbers out of the USA put a damper on the prospect of higher prices for this white metals and selling began. AT first it seemed like the whole group was going to falter. Then the very weak Construction Spending data came out -.7% and the previous month revised downward as well which added concern of continued weakness showing in the US economy. This has supported gold and silver tagged along for an albeit small recovery form the day’s lows. The news today was not good for the platinum group metals. But even worse the fact that it hit during Rosh Hashanah while many of our many colleagues are out celebrating has caused extreme moves during this time of lower liquidity. It seems to this observer that todays move just may be a little overdone.