Gold seeking a position to affect the southern African platinum

Commerzbank looks for investors to keep seeking gold as a “store of value” and also cites potential for power-supply issues to affect South African platinum miners.

Even with a good Portuguese bond auction Wednesday, there is the risk that the country will need a rescue package given the high refinancing costs, the bank says.

“Gold should remain in strong demand as a store of value amid the persisting uncertainties,” Commerzbank says. Meanwhile, the bank points out that South African energy company Eskom has warned mine operators of possible supply bottlenecks.

Heavy rains are disrupting coal supplies, which account for around 95% of South Africa’s power. Maintenance work is worsening the situation.

Still, “the company hopes to avoid a repeat of the 2008 blackouts, when several of the country’s largest platinum mines had to be closed temporarily, pushing platinum prices above $2,200 a troy ounce,” Commerzbank says.

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