Platinum Price Outlook – December 2023

“Platinum Price Outlook
Platinum prices hit a one year low in the first half of November. While prices recovered from those lows during the second half of the month, they failed to settle above the $950 level, which has become an important resistance level for prices in recent months. Prices have slid back toward the $900 level during the early days of December. Platinum prices are expected to move in a sideways fashion mostly between $850 and $950 in the near future. Prices could step out of this range from time to time, possibly falling as low as $800 or rising as high as $1,000.

Renewed concerns about electricity shortages in South Africa and seasonal strength in prices should help keep platinum prices supported over the next few months. Potential job cuts at Sibanye and Anglo Platinum’s platinum mines in South Africa are another factor that could support prices in part because they could mean lower platinum production in the future or labor disruptions at platinum mines, which could result in mine supply disruptions. While there are various concerns that could be supportive of platinum prices, for prices to break out to the upside of the above stated range these risks would need to materialize.

Expectation of slowing economic growth during 2024 is likely to hurt demand for commercial vehicles during 2024, which coupled with an ongoing increase in battery electric vehicle market share is expected to act as a headwind to platinum prices.”