Platinum metals firm in Europe on Russian export fears
06:42 a.m. Dec 09, 1998 Eastern
LONDON, Dec 9 (Reuters) - Platinum Group Metals (PGMs) firmed in early European trading on Wednesday on fears about Russian export delays next year while gold remained quiet and range-bound, dealers said.
Platinum and palladium firmed on news that Russia's major producer Norilsk Nickel (NKEL.RTS) was concerned that first quarter exports next year may be delayed by bureaucratic wrangles.
Platinum was last quoted higher at $349.00/$351.00 an ounce from the New York close at $344.80/$346.80. Palladium was almost $7 higher at $280.00/$285.00 against the close at $273.05/$278.05.
Dealers said the PGMs firmed after the Russian news.
''The Norilsk news provoked enough interest to push the metals higher,'' one London dealer said.
Norilsk said in a statement issued late on Tuesday that bureaucratic delays in issuing 1999 export quotas may prevent it from exporting PGMs in the first quarter of next year.
''The quotas which should have been allocated by December 1 have not yet been determined, which may lead to a stoppage of first quarter exports in 1999 as happened in 1997 and 1998,'' Norilsk said.
PGM export quotas are issued on an annual basis by a presidential decree followed by a government resolution. Delays in signing quotas in 1998 kept Russian palladium and platinum off the market for several months, while prices soared.
Russia accounts for around 70 percent of global palladium supply and around 20 percent of platinum.
Gold was last quoted just lower in London at $293.40/$293.80 a troy ounce against Tuesday's $293.40/$293.90 New York close.
Dealers said gold was well supported at the $292.00 level but remained capped at $296.00/$297.00.
Bullion moved higher towards the $297.00 level at the start of the week on fund buying but dropped lower on producer sales since then, dealers said.
''Someone certainly bought a lot, which saw it up to the $297.00 level but a few producers came out of the woodwork and so we are back in the $292.00/$298.00 range,'' another dealer said.
He said with other commodities looking poor and the benchmark Commodity Research Bureau Index (CRB) at fresh 21-year lows on Tuesday, gold might be set for a test of the downside.
''A downside break might be most likely but I don't think the market is positioned either way,'' the dealer said.
But dealers said the bullion market might also be winding down ahead of the Christmas and New Year festive season.
''People, to a large extent, have shut up shop for Christmas,'' one dealer said.
Dealers said with the weaker South African rand pushing up the price of gold in rand terms, South African producers might attempt to cash in on the higher local price of gold by selling more production forward.
The rand gold price was last quoted at 1,767/1,775 rand an ounce - its highest level in nearly two months.
The Australian dollar remained under pressure on Wednesday and the price of gold in Australian dollars was last quoted at A$ 475.91/$477.34 - the highest level since October 9.
Silver traded quietly in Europe on Wednesday, and was last quoted higher at $4.81/$4.84 an ounce from the previous New York close at $4.79/$4.82.
((Marius Bosch, London newsroom +44 171 542 8065, fax +44 171 542 8077. london.commodities.desk+reuters.com))
Copyright 1998 Reuters Limited |
