Platinum prices rose for the fifth straight day as the South African mine strike drags on and threatens to spread.
South Africa supplies about 80% of the world's production of platinum.
The latest price is a 70 day high at NZ$1,187.30. In US$ it reached a 100 day high, although a large part of that move relates to the fast-falling value of the US dollar following the US Fed minutes.
The US stimulus talk has also pushed the price of gold above US$1,650 an ounce for the first time since early May. In NZ currency it starts today at NZ$2,036 an oz, its highest level since mid June.
Those US dollar prices has international investors noting gold is above its 150-day and 200-day moving averages. They expect stimulus to be good for gold, although the impact will be much more muted for NZ$ investors as it will be the decline in the US dollar that drives the price.
Recent history shows the NZ$ is regarded as a 'commodity currency' and tends to rise and fall in a similar way to the gold price (gold being a key commodity) so the impact is somewhat self-cancelling.
The latest data for gold demand from the World Gold Council shows that only a handful of central banks buying is holding the price up in real terms.
Reuters is reporting Clyde Russell as saying "The risks to the gold price have to biased to the downside until Chinese and Indian demand regains momentum and/or Europe's debt crisis reignites."
Prices for gold may well rise in US dollar terms, but that will be based on the depreciation of that currency via aggressive money printing. In NZ$ terms, wait for a pick-up in broader demand.
Comparative pricing
You can find our independent comparative pricing for bullion, coins, and used 'scrap' in both US dollars and New Zealand dollars which are updated on a daily basis here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.