KITCO NEWS – Gold prices sees some volatility this Thursday, but it has really been the platinum group metals that have stolen the show in recent weeks with the Volkswagen scandal coming to the forefront. VW was recently put in the limelight when allegations were released that the company had been cheating on emission tests on its diesel cars, having an inevitable impact on platinum prices. Nymex January platinum futures dropped more than 10% on the news before bouncing again. Despite the decline, CPM Group remains optimistic on the precious metal, expecting prices to average around $1,100 an ounce in the coming months. ‘We actually, in medium to long term, have a pretty optimistic forecast for platinum,’ Rohit Savant, senior commodity analyst for the research firm, told Kitco News Thursday. ‘We think that some of the trends that are being stated right now as being negative for platinum — and because of the VW scandal people are going to move away from diesel — are really trends that have been in place for some time,’ he said, adding that the recent weakness in prices have been positive for demand. His sentiment towards rhodium mirrored that of its sister metal, with Savant noting that rhodium stands to gain the most of the platinum group metals. For palladium, however, although forecasts remained positive, he said the upside remains limited. ‘We don’t see a sharper increase in prices from where it is right now because a lot of the fundamentals for palladium are already priced in,’ he explained.
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