Strong demand lifts platinum

SINGAPORE: Platinum climbed to a 17-month high on optimism that vehicle demand in China will continue to grow as the country leads the recovery from the global recession. Palladium rose to the highest since July 2008.

Platinum futures headed for the longest rally in more than two years after China's vehicle sales jumped 46 percent in 2009, overtaking the US as the world's largest automobile market and ending more than a century of American dominance. Automakers account for almost two-thirds of global platinum consumption.

"Platinum group metals are a necessary component in construction of catalytic converters," said James Steel, an analyst with HSBC Securities. "The prospect of a continued recovery in global automobile demand this year is positive for platinum group metal prices."