US platinum futures inched up early on Wednesday, after hitting a record high in the previous session, helped by robust investment demand and supply tightness amid uncertainty about when Russia will issue export licenses.
Gold contracts dropped slightly in quiet trade after finishing sharply higher in the previous session, as traders took positions before the Christmas holiday and looked for trading cues from the energy inventory data scheduled later on Wednesday.
"Platinum's been very active. The story has been the situation about when will Russia be issuing their export permits, and they apparently have not yet been issued. That seems to be causing some uncertainty and tightness in the market," said Andy Montano, director with bullion dealer ScotiaMocatto in Toronto.
At 10:23 am EST (1523 GMT), Nymex January platinum was up $2.70 at $1,518.00. It hit a bottom of $1,508.90 in the early sessions and a high of $1,523. Spot platinum was quoted at $1,512/1,516.
On Tuesday, January platinum hit a contract peak of $1,526.40 an ounce. Dealers said that the steep backwardation in the platinum futures markets will continue to support prices of the January platinum contract. Lower output from top platinum producer South Africa because of mine closures amid safety concerns also boosted the white metal.
Gold futures fell on the back of profit taking and a dollar rise versus the euro after they finished 1 percent higher on Tuesday. February gold on the Comex division of the Nymex was down 10 cents at $807.30 an ounce. It traded in a narrow range between $802.20 and $808.40.
Spot gold was quoted at $800.10/800.80 an ounce, compared with $802.90/803.60 in New York on Tuesday afternoon. London bullion dealers fixed the afternoon spot reference price at $799.75.
Comex March silver was up 5.00 cents at $14.215 an ounce, trading between $14.090 and $14.235. Spot silver was quoted at $14.06/14.11 an ounce, compared with $13.98/14.03 late Tuesday in New York. London silver was fixed at $13.98.