Platinum's Slow Burn: Is a Breakout on the Horizon?

Platinum Prices Remain Range-Bound

As of mid-May 2025, platinum prices are hovering around $986.45 per ounce, reflecting a modest increase since the beginning of the year. This stability comes despite various market pressures and reflects a balance between supply constraints and demand factors.

Supply Constraints Could Drive Prices Up

Analysts point to structural supply deficits in the platinum market, which could exert upward pressure on prices if demand remains steady or increases. The platinum price fluctuated in 2024, trading between US$900 and US$1,100 per ounce.Some of its gains were due to strong demand from the automotive sector, which reached a seven-year high during the first quarter. Interest rate cut speculation in May also helped boost precious metals prices. Platinum reached its year-to-date high of US$1,094 on May 17.

Market Awaits Clear Signals

Traders are watching for decisive movements that could signal a breakout from the current trading range, with particular attention to industrial demand and geopolitical developments. The price of the metal also benefited from a supply shortfall of more than 450,000 ounces for the year. Platinum supply is forecast to increase marginally by just 0.76 percent in 2025.Supply is anticipated to come in at 7.32 million ounces, up slightly from the 7.27 million ounces produced in 2024. This sets the market up for a supply shortfall of 539,000 ounces this year.

Note: All prices mentioned are in U.S. dollars (USD).

Note: This content is for informational purposes only and does not constitute financial advice. Always perform your own due diligence or consult a qualified advisor before making investment decisions.