The metal has increased by more than 150% this year. It also surged for a tenth consecutive session, its longest winning run since 2017. With banks parking metal in the US to protect against the potential of tariffs, the London market is showing signs of tightening, which coincides with the current spike.
The surge of investment in precious metals this year has included platinum, which is used in the jewellery and automobile industries. Silver and gold have also reached all-time highs.
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As traders await the results of Washington’s Section 232 investigation, which may result in tariffs or trade restrictions on the metal, more than 600,000 ounces of platinum—a significantly larger quantity than usual—are waiting in US warehouses.
In the meantime, this year’s shipments to China have been strong, and the recent start of contract trading on the Guangzhou Futures Exchange has increased demand optimism. Guangzhou prices have increased significantly in comparison to other worldwide benchmarks.
Due to supply difficulties in South Africa, a key producer, platinum is expected to experience a third annual shortage this year. Manufacturers who use the metal to make products like chemicals, glass, and lab equipment have also had to deal with high borrowing prices. Instead of purchasing the commodity directly, industrial users frequently choose the less capital-intensive leasing option.