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London - Platinum rallied a third day as rand advanced, spurring concern that the stronger currency will raise production costs for the metal and lead to higher prices.
Platinum for immediate delivery added 1.3% to $1 084 89 an ounce as of 10:58 in London. In three days, the metal has gained 3.6%, the most since July 29.
The rand rose as data showed South Africa’s economy expanded during the second quarter on a rebound in mining and factory output.
"Platinum has been pretty closely bound to the rand," Grant Sporre, an analyst at Deutsche Bank AG in London, said by phone.
"A stronger local currency makes the metal more expensive to produce, so raises expectations for future prices."
South Africa produces the lion’s share of the world’s platinum, accounting for almost 75% of newly mined metal.
Prices have risen 22% this year, trailing returns in silver and gold.
Gold advanced a fourth day, climbing 0.4% to $1 331.86 an ounce. ABN Amro Group’s Georgette Boele, who was a top forecaster in the second quarter, cut forecasts for the metal on the subdued market reaction to the UK’s decision to leave the European Union and expectations for higher US interest rates.
The bank expects gold to end the year at $1 325, compared with a previous estimate of $1 350.
Spot silver added 0.3% to $19.5765 an ounce. Prices have risen for five days, the longest stretch since July.
Palladium gained 0.9% to $686.17 an ounce.
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