Platinum up on expected increase in China demand

Tag : china jewelry
NEW YORK -
Platinum prices rose Monday on expectations that China will buymore of the metal used in jewelry and as a catalyst in automobiles.
Platinum for October delivery rose $18 to settle at $1,776.70 anounce on the New York Mercantile Exchange, after earlier rising ashigh as $1,788.80 an ounce.
John Reade, chief metals analyst with UBS (nyse: UBS - news - people ) AG in London, said in a note that "strong appetite" for platinumin China could boost prices, which have fallen 22 percent fromtheir March high of $2,288.
About half the world's platinum used in jewelry is sold to China,according to UBS data.
Platinum prices also fell earlier this year on expectations that ashift toward smaller, more environmentally friendly cars wouldreduce demand for the metal. Catalytic converters contain smallamounts of platinum, palladium and rhodium.

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