FX.co ★ Platinum Nears Record Peaks

Platinum futures recently rose to approximately $2,700 per ounce, nearing record highs due to ongoing supply limitations and robust investor interest. The increased investment activity reflects platinum's constrained market size and its comparatively lower price, meaning that even slight physical purchases can significantly impact market dynamics. A persistent structural annual supply deficit remains a critical concern, particularly given that South African production, which constitutes around 70% of global output, is hindered by underinvestment and logistical challenges. Additionally, supply risks may escalate as Canada, another leading producer, could potentially encounter 100% tariffs if U.S. President Trump's trade agreement with China proceeds. The automotive industry's demand for platinum continues to be strong, especially for catalytic converters, following the European Union's decision to reverse the 2035 ban on combustion engines. Furthermore, the ongoing weakness of the dollar supports wider demand for precious metals.