Platinum Price Outlook

“Platinum prices continued to weaken during June, a trend that has been in place since late April 2023. At the end of June, prices have essentially given back all of the gains that they experienced during 2023. Further weakness is possible in the coming months. There is healthy support for platinum prices at the $900 level. If prices are able to break forcefully below this level, a decline to $830 or even $800 cannot be ruled out. Seasonal weakness in platinum prices, coupled with concerns of slowing economic growth are expected to weigh on platinum prices. That said, platinum prices have already declined a lot so far this year, and while more declines are possible most of the weakness in prices may already be behind the market.

While platinum has seasonal and macroeconomic factors working against it in the near term, healthy demand for commercial vehicles so far this year coupled with an ongoing increase in use from the gasoline auto catalyst sector should help to provide support to platinum prices. There also is the risk of supply disruptions in South Africa’s mining industry, as the country heads into its winter when electricity demand rises, which could quickly reverse any weakness in prices. The threat of a supply disruption should prevent any further sharp decline in prices. That said, unless there is an actual supply disruption prices are not expected to rise.”