Platinum raced to a six-year peak on Wednesday on hopes of a fillip to demand for the auto-catalyst as the economy recovers, with gold and other precious metals also boosted by a softer dollar and bets for fresh U.S. stimulus.
Platinum rose 4.4% to $1,226.58 per ounce by 10:34 a.m. EST (1534 GMT), having earlier hit its highest since February 2015 at $1,250.00.
“We are expecting demand for autos to increase globally as we move into a recovery phase,” said Bart Melek, head of commodity strategies at TD Securities, adding higher standards for pollution control will require more of the metal.
A report from specialist materials company Johnson Matthey showed a deficit of platinum grew last year.
Palladium also saw a large supply shortfall, but this was less extreme than in 2019.
Palladium rose as much as 3.1%, and was last up 2.3% at $2,372.86 per ounce.
Platinum is likely to continue to play “catch-up” with palladium, Melek added.
Both metals are used by automakers in catalytic converters to clean car exhaust fumes.
Spot gold meanwhile, rose 0.2% to $1,840.21, while U.S. gold futures gained 0.1% to $1,838.50.
Spot silver fell 0.7% to $27.02.