Where next for gold and platinum?

Supply shortages prompted by power disruptions in key producer South Africa have seen gold and platinum hit record highs. And the power problems show no sign of abating any time soon.

Once again we have seen "how sensitive tight markets are to production hiccups", said Carolyn Cui in The Wall Street Journal. Gold and platinum prices have hit respective new records of over $930 an ounce and $1,820 an ounce as power outages hit mine production in South Africa, which supplies 75% of the world's platinum and around 15% of its gold.

State electricity group Eskom has been battling to keep up with demand due to a booming economy and a lack of investment in new capacity. It will begin rationing power to customers as early as March, implying further supply disruptions.

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