Platinum sees gains on price forecast

Platinum prices were up substantially Monday on predictions that prices will rise on increased demand both from pollution-control device manufacturers and from jewelry makers.

Banc of America Securities-Merrill Lynch forecast that platinum could rise above $1,500 in the next two years or so.

October platinum added $31.10 to $1,222.50 per troy ounce in New York while September palladium, also used in jewelry making and the manufacture of pollution-control devices for motor vehicles, had added $2.15 to $263.60 per troy ounce in early afternoon trade in New York.

Rhodium, another platinum-group metal that is used to make jewelry and catalytic converters among other uses, added $50 to $1,650 per troy ounce.

Among other precious metals, December gold was up 40 cents to $956.30 per troy ounce while September silver gained 12 cents to $13.99 per troy ounce.

September copper added 2 cents to 2.55 per pound in New York on data showing that new home sales in the United States were up 11 percent in June from May, indicating that the worst of the housing crisis might be over, while three-month copper was last at $5,600 per tonne in London even though London Metal Exchange stockpiles added 3,475 tonnes during the session.