Geopolitical shifts in Middle East today hit commodities hard. Platinum took big hit. Iranian forces reportedly struck two U.S. military bases. Meanwhile, Iranian state media reported talks with Washington on hold for several days. And Hezbollah rejected Israel's partial ceasefire offer. All this sent platinum's value tumbling.
Morning trading on Guangzhou Futures Exchange (GFEX) showed decline . benchmark PT2608 platinum contract,most traded,closed at 477.65 yuan per gram, down 0.82%. An inverted spread between GFEX PT2608 and Shanghai Gold Exchange (SGE) platinum 9995 stood around 6 yuan/gram.
Yet,physical platinum market showed some resilience . Spot platinum prices ranged from a 2 yuan/gram discount to parity against PT2608 contract . Suppliers with warrant spot cargoes priced high,struggling to close deals at those levels.
Behind this,large physical platinum volumes went to registered warrants,boosting spot prices. Some deals quoted about 2 yuan/gram below main platinum contract 2608. Downstream buyers kept buying,negotiating based on orders. Trading firms active in both spot,futures markets,looked for arbitrage opportunities . But how long can this last…
