Europe's recovery drives the platinum bounce
Platinum has bounced off June’s three-year low of $1,300 an ounce, and should rise further, thanks to Europe’s industrial recovery.
Supply is tight, with the market heading for a big deficit this year, says Tom Kendall of Credit Suisse. More strikes in South Africa, the biggest producer, are always a possibility, while the outlook for demand is improving thanks to Europe's industrial recovery.
Platinum is a key ingredient in catalytic converters for diesel-burning cars, a market Europe dominates. Morgan Stanley sees prices averaging $1,600 in the fourth quarter.