31.12.202508:33:47UTC+00Platinum Pulls Back From Record, Still Set for Best Year on Record

Platinum futures have edged down to approximately $1,970 an ounce, pulling back from their all-time high as investors choose to secure year-end profits. Despite this retreat, platinum is still set to close the year with an impressive gain of around 120%, which is nearly double the annual increase gold has seen, marking its most robust performance in history. This surge has been fueled by a persistent supply squeeze coupled with robust demand. Key production areas, notably in South Africa, continue to face challenges, including chronic underinvestment, operational interruptions, and rising production costs, resulting in the third consecutive year of market deficit. On the demand front, platinum has enjoyed several favorable influences. Increased geopolitical and trade tensions have enhanced its status as a safe-haven asset, with ETF inflows rising as investors seek exposure to undervalued metals. Industrial demand remains strong, particularly from the automobile sector, where platinum catalysts are used in internal combustion and hybrid vehicles. This demand received an additional boost as the EU scaled back its proposed 2035 ban on combustion engines, further contributing to the metal’s price increase.