FX.co ★ Platinum Extends Record Run

Platinum futures have catapulted toward $2,900 per ounce, continuing their unprecedented ascent. This rally is primarily underpinned by robust investment interest and a constrained physical market. Unlike gold, which has an annual market size of about 5,000 metric tons, platinum's relatively smaller market of approximately 250 metric tons makes its prices particularly susceptible to buying activities. Its comparatively lower price facilitates greater acquisition by investors. Although industrial and jewelry demands have contributed to this upswing, the primary driver remains the acquisition of physical bars, with only partial visibility in ETFs or futures markets. Elevated lease rates in London signal persistent shortages, while China's potential introduction of local-currency platinum contracts could provide further momentum. Additionally, projections of declining US interest rates and a weakening dollar have bolstered the market. Geopolitical and trade tensions continue to fuel demand for precious metals, particularly as US President Donald Trump has recently threatened to impose 100% tariffs on Canada should it solidify a trade agreement with China.