Platinum prices set another record

Precious metals prices saw gains on Friday, with platinum setting yet another record.

April platinum was trading $32.60 higher at $1,884 per troy ounce in New York shortly before the end of floor trade.

The new record came on concerns that production will decline in South Africa and Russia, and on predictions that the price of platinum could reach $2,000 per troy ounce this year.

South Africa’s production problems have to do with electricity shortages, with the state-owned power company there telling large consumers that it will not be able to guarantee adequate power supplies until 2013.

April gold added $11.60 to $921.60 per troy ounce on suggestions that lower interest rates in the US could boost inflation.

Investors often turn to gold as a hedge against inflation.

March silver added 33 cents to $17.10 per troy ounce, while in morning trade March palladium was up just over $9 to $437.85 per troy ounce.