So many reasons why AIR is a tremendous hold. Only a matter of time before this company is noticed: “Further boosting sentiment are expectations of palladium-to-platinum substitution in catalytic converters of gasoline cars starting in 2022, as well as prospects that platinum will benefit from the energy transition to green hydrogen in the long term,” UBS analyst Giovanni Staunovo said in a note.
https://www.bloomberg.com/news/articles/2021-02-10/gold-holds-three-day-advance-as-investors-weigh-stimulus-outlook?srnd=markets-vp Gold was steady after advancing for three straight days as investors weighed a weaker dollar and the prospects for more U.S. stimulus amid rising inflation expectations. Platinum rallied to a six-year high.
Joe Biden’s administration has dedicated its first few weeks in office to spending more money on pandemic relief -- and shrugged off warnings that the economy may overheat as a result. The president backed House Democrats’ proposal for quicker phase-outs of planned $1,400 stimulus checks, and the House aims to vote on the full bill during the week of Feb. 22. Speaker Nancy Pelosi has pledged to secure congressional passage by mid-March expiration of enhanced jobless benefits approved in the December aid package.
Precious metal surges to six-year high
Bullion is holding near a one-week high as bets on a fast-tracked aid package are helping to underpin market-derived inflation expectations, which are at multi-year highs, and have fanned the so-called reflation trade. On Wednesday, U.S. consumer price data is due, while Federal Reserve Chair Jerome Powell will speak on a webinar hosted by the Economic Club of New York.
“The short-term focus for the market is zeroed in on the U.S. fiscal stimulus and this may well keep gold prices supported, likewise with the easing of some greenback strength into this week,” said Jingyi Pan, market strategist at IG Asia Pte. “Powell’s speech will also be one watched ahead with any reinforcement of the low interest rate environment supportive for gold prices.”
Spot gold added 0.2% to $1,842.13 an ounce by 10:45 a.m. in Singapore, after rising to $1,848.60 on Tuesday. The Bloomberg Dollar Spot Index was flat after dropping 0.5% Tuesday.
In other metals, spot platinum rose as much as 2.3% to $1,207.94 an ounce, the highest since 2015. The metal is expected to benefit from tight supplies, strong investment demand, and the global recovery, according to UBS Group AG, which has forecast a surge to $1,250.
“Further boosting sentiment are expectations of palladium-to-platinum substitution in catalytic converters of gasoline cars starting in 2022, as well as prospects that platinum will benefit from the energy transition to green hydrogen in the long term,” UBS analyst Giovanni Staunovo said in a note.