(recasts, adds quotes, changes prices, pvs SINGAPORE)
By Atul Prakash
LONDON, Feb 15 (Reuters) - Platinum rose more than 1 percent
on Friday to trade just below record highs above $2,000 an ounce
as investors bet on strong prices due to output losses in top
producer South Africa.
Spot metal <XPT=> hit a high of $2,024 an ounce and was
quoted at $2,017/2,022 at 1047 GMT, against $1,997/2,007 in New
York late on Thursday, when it hit a record high of $2,025.
South Africa, which accounts for 80 percent of global
platinum supply, has been hard hit by power cuts since early
January, forcing mines to shut for five days last month.
"If there are no bad news from South Africa, I could imagine
that we test the lower side," said Wolfgang Wrzesniok-Rossbach,
precious metals analyst at Germany's Heraeus.
"But any information about further problems could cause
another spike and theoretically, $2,075 seems possible."
South Africa's state power firm Eskom said on Thursday it
would increase coal purchases and buy back electricity from
those industrial users able to reduce consumption under a plan
to address crippling shortages. []
Analysts say the platinum deficit could widen to more than
400,000 ounces by the end of 2008, compared with about 265,000
ounces in 2007. The market had a surplus of 65,000 ounces in
2006 following seven successive years of deficits.
"Platinum supplies are heavily dependent on this market, and
the delicate power supply situation as well as concerns about
mine safety leave mine output extremely susceptible to potential
disruptions," Barclays Capital said.
"The market is set to retain its deficit, further eroding
the low level of above ground inventories thus further buoying
platinum prices," it said in a report.
Impala Platinum <IMPJ.J>, the world's No. 2 producer, on
Thursday forecast "very tight market conditions", while No. 1
producer Anglo Platinum <AMSJ.J> said this week the power
problem alone would cut output by 120,000 ounces in 2008.
Japanese platinum futures were at record highs. The most
active December contract <0#JPL:> on the Tokyo Commodity
Exchange ended by the 240 yen daily limit to 6,705 yen per gram.
GOLD GAINS
Gold also advanced, helped by a weaker dollar and Thursday's
comments from Federal Reserve Chairman Ben Bernanke reinforcing
the impression it will cut its benchmark rate by 50 basis points
in the U.S. central bank's next policy meeting in March.
Spot gold <XAU=> rose as high as $913.30 an ounce and was
last quoted at $909.70/910.40 an ounce, against $907.10/907.90
in New York late on Thursday.
U.S. gold futures <GCJ8> rose $2.5 an ounce to $913.30.
"The return of the weak dollar/strong oil scenario should
prove support for gold in the coming sessions. As well, traders
again interpreted Bernanke's comments to suggest a further rate
cut may be in the pipeline," said James Moore, metals analyst at
THeBullionDesk.com.
"Gold now needs to conquer chart resistance at $913 and $927
or else the metal will remain vulnerable to a deeper correction
back to the $875-$882 area."
Bernanke told the U.S. Senate Banking Committee the central
bank "will act in a timely manner as needed to support growth
and to provide adequate insurance against downside risks."
A rate cut tends to boost gold' appeal as an alternative
investment to currencies and bonds.
Palladium <XPD=> firmed to $436/441 an ounce from $433/437,
while silver <XAG=> rose to $17.35/17.40 from $17.24/17.29 an
ounce in the U.S. market.
(Additional reporting by Lewa Pardomuan in Singapore)
(Reporting by Atul Prakash; editing by Michael Roddy)
