Platinum prices rose 14%
On Friday, October 23, platinum futures for January saw a significant moment in terms of their prices. Though the prices closed 1.1% lower than the previous day’s close, they touched a high of $1,021 an ounce and a low of $996.50. After the Volkswagen scandal in September, the price of platinum recoiled to almost its previous levels. Platinum futures have nearly gained 14% after striking the seven-year low of $893 an ounce at the beginning of the month.
Toyota fuel cell cars
Platinum is primarily used in catalytic converters to reduce emissions. The platinum-based converters are employed in diesel-based vehicles. The Volkswagen scandal had dented the outlook for the metal and boosted the demand for palladium-based converters that are used in gasoline-based cars. However, as platinum plunged to a seven-year low, Toyota boosted the outlook for platinum. Volkswagen’s manufacturer aims to reduce the pollution emitted by its vehicles. As Toyota is opting to make fuel-efficient vehicles, the Japanese government is willing to back the company’s initiative. Toyota launched its first fuel cell car, the Mirai, for the European market on Thursday. These fuel cell cars require platinum.
Though platinum saw a down day on Friday, it looks like Toyota has supported the precious metal. Other precious metals also fell on Friday, except palladium. The Direxion Daily Gold Miners ETF (DUST) fell 7.3%. Most mining companies like Eldorado Gold (EGO), Goldcorp (GG), Newmont Mining (NEM), and Gold Fields (GFI) saw their prices rise. These four companies make up 20.7% of the VanEck Vectors Gold Miners ETF (GDX).