Platinum soared to an all-time high, trading above $2,300 an ounce for the first time on tight supplies and historically elevated borrowing costs.
The metal rose for a 10th straight session — its longest winning streak since 2017 — and has advanced more than 150% this year, the biggest annual gain since Bloomberg began compiling data in 1987. The recent surge has come as the London market shows signs of tightening, with banks parking metal in the US to insure against the risk of tariffs.
Used in the automotive and jewelry sectors, platinum has been caught up in the wave of investment that poured into precious metals this year. Gold and silver have also risen to records.
More than 600,000 ounces of platinum are sitting in US warehouses — an amount much higher than usual — as traders await the outcome of Washington’s Section 232 probe, which could lead to tariffs or trade restrictions on the metal.
Meanwhile, shipments to China have been robust this year, and demand optimism has been bolstered as contracts recently began trading on the Guangzhou Futures Exchange. Prices in Guangzhou have risen well above other international benchmarks.
Platinum is on course for a third annual deficit this year, due to supply disruptions in major producer South Africa. High borrowing costs have also been an issue for manufacturers that use the metal to produce goods ranging from chemicals to glass to laboratory equipment. Industrial users often choose the less capital-intensive option of leasing, rather than buying the commodity outright.
Platinum rose as much as 3.1% to a record $2,361.23 as of 8:19 a.m. in Singapore. Sister metal palladium gained as much as 2.5%.
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