Platinum prices have rebounded sharply to approximately $920 per troy ounce as of Stember, marking the highest level in two months. This increase is driven by expectations of a decrease in supply and a global trend towards lower interest rates, which enhances the appeal of precious metals.
According to the World Platinum Investment Council (WPIC), total mine supply in 2024 is set to decline due to a reduction in refined production in key regions including South Africa, Zimbabwe, Russia, and North America. At the same time, demand for platinum is projected to rise, particularly in the jewelry sector, supported by the price differential relative to gold.
The automotive sector is also witnessing a surge in platinum demand, driven by the ongoing substitution of platinum for palladium, increased demand from heavy-duty applications, and trends towards hybridization, as per the WPIC.
Since the start of 2024, platinum has increased by $29.55/t oz., or 2.99%, as rorted through trading on a contract for difference (CFD) that mirrors the benchmark market for this commodity. Looking ahead, analysts anticipate that platinum will trade at around $906.92/t oz. by the end of this quarter, with a projected value of $852.01 in twelve months.