Platinum hits six consecutive highs, analysts bullish with $2300 expected soon

Supply Gap Drives Future Market Trends

The global precious metals market is experiencing a structural shift. Analysts point out that the core drivers behind the continuous rise in platinum prices stem from a dual effect of long-term supply imbalances and capital reallocation. Edward Sterck, Research Director at the World Platinum Investment Council, admits that by 2025, the global platinum market has entered its third consecutive year of supply deficits, a gap expected to persist until 2029.

South Africa, which accounts for over 70% of global platinum production, has recently fallen into a “triple dilemma”—mines aging increasingly severely, power supply disruptions occurring repeatedly, and extreme weather events frequently hitting the region. These structural issues have led to a continuous decline in output, with the spot market’s indicator—the platinum monthly leasing rate—rising to a historic high of 14.12%, fully reflecting market tension.

Fed Rate Cuts Drive Precious Metals Rally

On December 18, platinum prices surged over 3%, closing at $1978 per ounce, reaching a new high since 2008 and marking six consecutive days of gains. More notably, since early 2025, platinum has risen nearly 120%, a performance far surpassing that of gold.

Following the Fed’s initiation of a rate-cutting cycle, the precious metals sector collectively advanced, with platinum and palladium leading the gains. A clear “scissors effect” has emerged in capital flows—massive capital has exited gold, which is already at a historical high, and shifted toward platinum, which has relatively lower valuations and higher volatility, creating a strong capital spillover effect.

Institutions Optimistic About 2026 Outlook

FXEmpire analyst Muhammad Umair believes that platinum has entered a new bull cycle, supported by three pillars: supply shortages, rising industrial demand, and capital rotation. From a macro perspective, a weaker US dollar, the Fed maintaining a dovish stance, and a declining gold-to-platinum ratio all provide solid support for platinum.

The analyst forecasts that platinum will advance to a target price range of $2170 to $2300 by 2026, representing over 10% upside from current levels. Deutsche Bank also remains optimistic about platinum investment demand rebounding to 500,000 ounces next year, with the market supply-demand gap accounting for 13% of total supply, similar to the situation in the past two years. Most institutions believe that while gold continues its upward trend, silver and platinum group metals will further catch up, forming a comprehensive upward movement in precious metals.