Platinum Heading Towards Its Worst Quarter in Last Seven Years
Since January, for the first time, price of platinum dropped under $US900 per ounce 2009. The precious metal was mainly hurt due anxiety over the Volkswagen emissions scandal, fearing a drop in demand from automakers. However, the saving grace was the bargain-hunting investors, who later balanced the losses.
Last week, Volkswagen AG agreed to have dodged the US vehicle emission tests with falsified emission levels using software that caused variation between the reality and the test results. The scandal has led to wide spread fears of fall in demand for vehicles of diesel cars, in which platinum is used in the engines.
The metal is broadly used in autocatalysts, especially the diesel powered engines.
Price of spot platinum dropped 0.2 per cent at $US914.50 an ounce after touching a low of $US894 earlier.
In September, the metal is set to note its largest monthly loss since May 2012. This is the sharpest drop in a quarter in the last seven years.
Only the VW scandal cannot be blamed for platinum's price dip. Reduces jewellery demand in the Chinese market as well as increased supplies due to an end in a five month strike of the miners with a key producer in South Africa also played their parts.
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