Gold and Platinum Peaks

By Pratima Desai

LONDON, March 4 (Reuters) - Platinum hit record highs on Tuesday as speculators bought on worries over supplies, while gold consolidated recent gains before making a stab at the key $1,000 an ounce level.

Spot platinum hit a session high of $2,275 an ounce and was at $2,270/2,275 by 1115 GMT, compared with $2,230/2,237 late in New York on Monday.

Platinum, used in jewellery and auto catalysts to clean exhaust fumes, has risen by more than 40 percent this year as a power crisis which has disrupted mining in main producer South Africa sparked supply fears.

"Platinum is very strong, inventories are low, fundamentals are very supportive," said Suki Cooper, analyst at Barclays Capital. She added that the global deficit this year could be up to 600,000 ounces.
"Given the strength of investment demand this year, the platinum deficit could be greater than that."

Gold hit a bid high of $987 a troy ounce and was at $984.70/985.60, up from $981.20/982.00 late on Monday when it touched a record high of $989.30.

"$1,000 seems likely in the near term, with global inflation expectations being fuelled by the current commodity bull run," Standard Bank said in a note.

The precious metal has gained nearly 50 percent since the credit market crisis triggered buying from investors looking for a haven from financial market uncertainty.