The price of platinum on the world market has reached a new high

The price of platinum on the world market reached a new high since the end of September, reaching $935 per troy ounce. In terms of price dynamics since the beginning of the month, platinum is beginning to catch up with gold and silver, which have taken the lead amid the worsening geopolitical situation in the Middle East. The rise in platinum prices is also driven by politics, this time in South Africa, one of the metal’s largest producers, as well as positive forecasts for the automotive industry.

According to the information resource Investing.com, on Monday, October 30, platinum quotes on the spot market rose above $935 per troy ounce, the highest since September 22. This result was 3.4% higher than last week’s closing value. During Monday’s trading, palladium also rose in price by 3%, with quotes reaching $1,157 per ounce. However, by 19:00, this metal had recovered most of the rise and returned to $1,128 per ounce, which is only 0.6% above Friday’s close. At the same time, platinum quotes remained near the local maximum, stopping near $934.3 per ounce.

As a result, platinum quotes begin to grow as quickly as gold and silver, which have been steadily rising in price since the beginning of October amid the worsening geopolitical situation in the Middle East. Last Friday, the price of gold on the spot market exceeded $2,000 per ounce for the first time since mid-May. During trading, quotes reached $2,005 per ounce. However, on Monday, the price of gold on the world market rolled back slightly below the round mark, to $1,999.92 per ounce, which is 0.3% lower than Friday’s close. Nevertheless, this result is almost 10% higher than the values ​​at the beginning of the month. On Monday, silver added about 1% in price, reaching $23.34 per ounce. In less than a month the growth was almost 12%. During the same time, the price of platinum on the world market, taking into account Monday’s growth, increased by almost 9%. At the same time, palladium lost about 2% in price.

Experts point to several factors that have led to an increase in the price of platinum. According to Alfa Capital portfolio manager Dmitry Scriabin, these include the introduction of new economic incentives in China, the rising cost of “protective” metals amid escalation in the Middle East, as well as the growing risk of a large-scale conflict in Africa after the coup in Niger.

South Africa is the largest producer of platinum group metals, and therefore any risks of production disruptions lead to higher prices.

Technical factors also influence quotes. “Financial investors previously actively opened short positions in platinum and palladium, the closure of which could lead to a significant increase in prices,” notes Dmitry Smolin, senior analyst at Sinara investment bank.

Limited production of platinum and palladium by South Africa and Russia, according to analysts, will contribute to further price increases. At the same time, platinum will grow at a faster pace due to high demand from the automotive industry, which is actively replacing palladium in catalysts for cars with internal combustion engines with platinum. “Although the timing of the recovery in demand for platinum group metals remains uncertain, at some point consumers’ reserves will be so depleted that interest in metals on the spot market may increase and fundamental market factors will be able to manifest themselves again,” notes Dmitry Smolin. According to the forecasts of the Sinara investment bank, by the end of the year the cost of palladium may reach $1,250 per ounce, platinum may rise in price to $1 thousand per ounce.

Vitaly Gaidaev