Platinum hits record $2,300 amid tight supply, strong demand
Platinum soared above $2,300 an ounce for the first time, reaching an all-time high due to tight supplies and historically elevated borrowing costs.
The metal has climbed for a tenth consecutive session—its longest winning streak since 2017—and has surged more than 150% this year, marking the largest annual gain since Bloomberg began compiling data in 1987, News.Az reports, citing Bloomberg.
The recent rally reflects a tightening London market, with banks storing platinum in the U.S. as a hedge against potential tariffs. Widely used in automotive and jewelry industries, platinum has also benefited from strong investment demand, alongside record gains in gold and silver.
Currently, over 600,000 ounces of platinum are held in U.S. warehouses—well above normal—as traders await the outcome of Washington’s Section 232 probe, which could impose tariffs or trade restrictions on the metal.
Shipments to China have been robust this year, with optimism fueled by the start of platinum futures trading on the Guangzhou Futures Exchange, where prices have risen above other international benchmarks.
Platinum is expected to record its third annual deficit this year, primarily due to supply disruptions in major producer South Africa. High borrowing costs have further affected industrial users, who often lease the metal instead of buying it outright for applications in chemicals, glass, and laboratory equipment.
Platinum prices climbed as much as 3.1% to $2,361.23 as of 8:19 a.m. in Singapore, while palladium gained up to 2.5%.
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