Platinum Price Outlook – July 2024

Platinum Price Outlook
“Platinum prices essentially finished June at the same price as where they started the month. On 3 June platinum prices settled at $1,022; prices settled at $1,014 on 28 June. During the first half of the month platinum prices declined, slipping to $945.70 on 13 June. Platinum prices had risen by 1% during the first six months of 2024 from the end of 2023. Much of that lackluster performance can be attributed to weakness in prices during the first two months of this year. Since the beginning of March platinum prices have been moving higher at a gentle pace.

The support for platinum comes primarily from the expectation that total supply, which is comprised of both mine as well as scrap supply, will decline this year. While the expected weakness in total platinum supply is supportive of prices, total fabrication demand is projected to weaken during 2024 as well, albeit at a slower pace than the projected decline in total supply.

The forecast weakness in fabrication demand for 2024 is expected to act as a headwind to platinum prices. While platinum prices could rise over the remainder of the year, the gains are unlikely to be particularly strong. There also is a risk of economic growth slowing more strongly during the second half of this year, which could negatively affect business sentiment, causing a pull back on commercial vehicle sales and a greater weakness in fabrication demand than is presently expected.

Over the next couple of months platinum prices are projected to move in a sideways fashion. Prices are expected to move between $950 and $1,065. If prices break support a decline toward $905 or even $880 is possible. On the upside, if resistance is broken prices could rise toward $1,100.”