BEIJING, Nov 27 (Reuters) - Spot platinum prices rose on

Thursday as the start of the futures trading on the China's

Guangzhou bourse provided support to the overall liquidity for

the metal.

The contracts are the first domestic price-hedging mechanism

for platinum and palladium in the world's second-largest

economy, where the metals are used by auto makers and other

industries, including jewellery and investment products.

Guangzhou's platinum futures for June delivery jumped by 6%

on their first day of trading, while palladium gained 1.5%.

Spot platinum prices in London were up 1.0% at $1,604

per troy ounce by 1226 GMT after hitting $1,641, their one-month

high. Spot palladium was steady at $1,423.

China is the world's largest consumer of platinum group

metals, relying heavily on imports. Accounting for nearly 30% of

global platinum consumption and 20% of palladium, it has been

lacking domestic price guidance, leaving it to track

international market moves, analysts said.

"This launch is transformative for China's platinum group

metals market," said Weibin Deng, head of Asia Pacific at the

World Platinum Investment Council.

"For the first time, domestic industrial users and

fabricators have a direct, regulated tool to hedge against

global platinum and palladium price volatility," he added.

Global prices of the two platinum group metals have surged

this year, driven by tightening supply and renewed investor

interest following a record-breaking run for gold and silver.

Spot platinum and palladium are up 76% and 56%,

respectively, so far in 2025.