Platinum futures surged toward $2,900 an ounce, extending its record-setting rally, driven by strong investment demand and a tight physical market. The metal’s small market, around 250 metric tons annually versus roughly 5,000 tons for gold, makes prices highly sensitive to buying, while its lower cost allows investors to acquire more ounces. While industrial and jewelry demand has contributed modestly, the surge is largely fueled by purchases of physical bars, with inflows only partly reflected in ETFs or futures positions. Elevated lease rates in London point to ongoing scarcity, and China could add incremental support through the launch of local-currency platinum contracts. Expectations of lower US interest rates and dollar weakness have provided additional backing, while ongoing geopolitical and trade tensions continue to drive broader demand for precious metals. US President Donald Trump recently threatened Canada with 100% tariffs if it finalizes a trade deal with China.
