FX.co ★ Platinum Hits Near 13-Year High

Platinum prices surged past $1,620 per ounce on Monday, reaching their highest point since February 2013. This increase is driven by safe-haven demand and persistent supply constraints. In response to the ongoing U.S. government shutdown and growing anticipation of further interest rate cuts by the Federal Reserve, investors are gravitating towards precious metals. Current market sentiment is heavily leaning towards a quarter-percentage-point rate cut this month, followed by another in December. Both jewelry demand and investment interest in platinum continue to be strong; however, the transition to electric vehicles is anticipated to reduce the demand for automotive catalytic converters. On the supply front, platinum production has decreased by approximately 16% since its peak in 2021, mainly due to higher operating costs, lack of investment, and diminishing ore quality. The World Platinum Investment Council (WPIC) forecasts ongoing annual supply shortfalls until 2029, averaging around 620,000 ounces, which accounts for about 8% of global demand.