Platinum remained above $1,660 per ounce, inching closer to its highest level in 12 years. This resurgence is underpinned by strong market fundamentals and mounting US-China trade tensions. The demand for safe-haven assets increased as both nations announced plans to impose additional port fees on shipping companies starting Tuesday. Moreover, US Treasury Secretary Scott Besent confirmed that President Trump is still scheduled to meet Chinese President Xi Jinping in South Korea towards the end of October. Meanwhile, the market is largely anticipating 25 basis point reductions in interest rates by the Federal Reserve in both October and December.
On the supply and demand front, platinum is recapturing market share in luxury jewelry as the price difference with gold narrows. Industrial demand remains robust, particularly in the sectors of gasoline vehicle catalysts, oil refining, and chemical production. On the supply side, pressures continue, with the market facing a deficit for the third consecutive year. Mine output is anticipated to decline by 6% in 2025, reaching 5.426 million ounces, and although automotive catalyst recycling is expected to increase at a compound annual growth rate of 4.7% through 2029, this growth will not sufficiently bridge the supply gap.
