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PRECIOUS-Platinum rally pauses after scaling 6-1/2-year high

Published 2021-02-15, 10:57 p/m
© Reuters.

* Platinum can hit $1,400/oz if supply issues persist-analyst

* Benchmark U.S. yields at highest since March

* Minutes of U.S. Fed's Jan meeting due on Wednesday (Adds comment, updates prices)

By Sumita Layek

Feb 16 (Reuters) - Platinum retreated from a near 6-1/2-year high on Tuesday as prices hit a technical resistance, although expectations that a rebound in the global economy would stoke demand kept the autocatalyst metal supported above the $1,300 an ounce level.

Platinum XPT= , used in catalytic converters for vehicles, was up 0.7% at $1,312.34 an ounce by 0706 GMT, but off the session high of $1,336.50, its best since September 2014.

Prices hit a technical resistance near the $1,330 level, said Stephen Innes, chief global market strategist at financial services firm Axi said, adding that it was a temporary pause and prices could continue to rise further.

The market was also weighing the roll-out of Johnson & Johnson (NYSE:JNJ)'s JNJ.N COVID-19 vaccine in top producer South Africa, he said. disruptions in South Africa, a recovery in auto sales and stricter emission regulations will keep prices supported, analysts have said. China implementing Phase 6 standard for both gasoline and diesel vehicles from January 2021, Platinum Group Metals loadings will be strong," said Soni Kumari, a commodity strategist with ANZ.

However, she said, "a swift recovery in mine supply and restart of Anglo (American Platinum)'s smelter to refine the stockpile of unprocessed platinum could pause this rally..."

If supplies take longer to return to normal levels, prices could soon hit $1,400, she added.

Palladium XPD= climbed 0.4% to $2,396.72, having earlier hit a one-month high of $2,424.26.

Spot gold XAU= rose 0.3% to $1,822.97 per ounce as the dollar .DXY eased against rivals. USD/

U.S. gold futures GCv1 were steady at $1,822.60, while silver XAG= gained 0.3% to $27.66.

Limiting bullion's gains, benchmark U.S. Treasury yields rose to their highest levels since March. US/

"Provided the 10-year yields stay below 1.5%, markets are still willing to ride the inflation narrative and that is quite supportive for gold," Innes said.

Minutes of the U.S. Federal Reserve's end-January monetary policy meeting are due on Wednesday.

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