Tokyo platinum futures rallied more than 1 percent to a new record high on Wednesday after a market-friendly report by London-based refiner Johnson Matthey the previous day sparked fresh aggressive fund buying.
Johnson Matthey said in its Platinum 2005 Interim Review that the global platinum market was expected to remain in deficit in 2005 and that prices should trade from $890 to $1,030 an ounce over the next six months.
Tokyo Commodity Exchange platinum initially fell on profit-taking in trade, but then attracted substantial bargain-hunting to lift the key contract through the psychologically sensitive level of 3,700 yen per gram.
"Both Japanese and US funds, and Japanese retail investors are turning more bullish after yesterday's Johnson Matthey report," said a trader at a Japanese trading company.
"The market is very eager to test platinum towards $1,000, making 3,850 yen as the next key target level for the Tokyo price," he said.
The benchmark TOCOM platinum contract finished the session at a record high of 3,730 yen, up 48 yen or 1.3 percent from Tuesday's close of 3,682 yen.
Its session low was 3,666 yen. The benchmark platinum contract has now climbed to a record high for six straight sessions. TOCOM began listing platinum futures in 1984.
"Buying by retail players is growing since platinum broke through 3,500 yen," another Japanese trader said, referring to the level reached by the key contract on November 9 that sparked the current rally.
Dollar-based spot platinum rose to its highest level since March 1980 on Wednesday. Spot platinum was trading at $980/984 an ounce, up sharply from $967/972 in New York.
TOCOM gold edged up to it's highest since January 1991, tracing surges in platinum. Benchmark October gold closed the session at 1,809 yen per gram, up nine yen or 0.5 percent from Tuesday's close of 1,800 yen.