Platinum reached record high of $1,333/ounce
UPDATE 3-Platinum marches to new record, gold matches peaks
By Atul Prakash
LONDON, May 12 (Reuters) - Platinum extended sharp gains to set a new all-time peak on positive supply-demand outlook and dollar weakness on Friday, while gold matched a 26-year peak on strong investor interest.
Prices of platinum, mainly used in jewellery and in car exhaust systems, were seen volatile ahead of the Platinum Week in London starting on Monday and release of an industry report by Johnson Matthey, the world's top platinum distributor.
"There is more fundamental justification for platinum. We believe that even at these high prices, the platinum market is in deficit at the moment," said John Reade, analyst at UBS Investment Bank.
China witnessed good consumer demand in the last few months and generally users, rather than speculators and investors, had been buying the metal, he said.
Platinum reached a record high of $1,333 an ounce before easing to $1,330/1,3402 by 0947 GMT, against $1,291/1,298 in New York late on Thursday.
The platinum market was in deficit for the seventh year in a row in 2005 as robust demand from the automobile sector negated a consumption drop in the jewellery market.
It jumped 58 percent in the past 12 months, of which a rise of more than $150 or 13 percent came in the last seven days.
"No matter how high platinum goes, there is demand to buy it from end-users, especially from car makers," said Akira Doi, director at Daiichi Commodities.
Johnson Matthey will present its views on the market balance and price trends in its report due for release at 1200 GMT on Monday.
"As commodities continue to surge, expectations are for platinum to hit $1,400 as resistance levels remain elusive," Standard Bank said in a report.