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Investing.com - UBS maintains a bullish long-term outlook for platinum despite acknowledging potential near-term challenges that could provide better entry points for investors, according to a research note released Wednesday.
The investment bank points to tight market conditions that suggest continued upside risks for platinum prices, particularly if supply shocks materialize or investor demand strengthens. UBS notes that current uncertainties in China and subdued jewelry demand may temporarily limit price momentum.
Regarding palladium, UBS observes that the metal began bottoming out in 2024, with this process continuing into the first half of 2025. The second half of 2025 has seen palladium trading in a higher range with pronounced volatility, which UBS attributes to a recalibration of supply and demand fundamentals.
While UBS sees upside risks for palladium prices over the next 12 months, the bank maintains that these short-term movements don’t change the long-term fundamental outlook of rising surpluses. The bank suggests the worst of palladium’s downturn is now behind us.
UBS attributes palladium’s price action to market participants adjusting to new realities following years of persistent deficits and shifting expectations regarding vehicle electrification, which has been a key demand driver for the metal.
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