Gold prices cool after hitting over 2-week high on Fed independence fears
Investing.com-- Platinum’s recent rally, which saw prices scale over decade highs, now appears overdone, ANZ analysts said in a Monday note, warning that the white metal may see some near-term pullback.
Spot platinum prices soared as much as 43% since mid-May, reaching a 11-year as a bullish industry report and bets on tighter supplies fueled a speculative frenzy in the white metal.
Increased safe haven demand and a lower price when compared to gold also boosted platinum.
But while the supply deficit trade still appeared supportive, ANZ warned that increasing demand headwinds and a potential supply increase in late-2025 presented an increasing risk of liquidation from current price levels.
ANZ said platinum could sink to $1,250 an ounce if it fails to break above $1,400/oz. While the metal had briefly broken above the level in June, it was now struggling to make headway. Spot platinum traded down 0.5% at $1,395.92/oz on Monday.
ANZ said Chinese imports were likely to be a major catalyst for platinum, but warned that these could stall if prolonged strength in prices dented consumer demand.
Demand from the automotive industry is also unlikely to improve amid U.S. tariff headwinds for the sector, while palladium to platinum switching was decreasing due to the latter’s strong price rally.
Mine production losses in South Africa, the world’s top platinum producer, are expected to elicit a 3% drop in 2025 global output, ANZ said. Limited recycling is also expected to keep the market in a supply deficit, presenting an overall supportive backdrop for platinum.