Platinum Price Outlook – September 2024

“Platinum Price Outlook
While platinum prices rose during the first three weeks of August, the metal’s prices has been in a longer term declining trend since the middle of May 2024. This declining trend reasserted itself during the last week of August and into the first few days of September. While platinum does benefit to some extent from strength in the gold price, its supply and fabrication demand fundamentals have a more pronounced effect on the metal’s price.

Based on this the platinum price is likely to come under further pressure if markets expect economic conditions around the world to weaken. Weaker global economic conditions would weigh on passenger vehicle demand but also on commercial vehicle demand, which is extremely important to platinum fabrication demand.

Softer economic conditions would also hurt platinum jewelry demand. Jewelry is a discretionary purchase and one of the first to be cut during weaker economic times. In addition to possibly weaker economic conditions going forward and the negative consequence of that on platinum fabrication demand, there also have not been any supply side interruptions that would help to drive platinum prices higher. South Africa’s electricity supply remains an issue, but it has not resulted in any lost supply in the recent past.

Platinum prices could see bouts of strength, but unless there is an improvement in economic sentiment or an actual supply disruption, platinum prices are likely to trend lower. Over the next few months prices could retest the $880 level, with prices periodically rising toward $920 or $950.”