Platinum futures climbed to around $2,700 an ounce, moving back toward record levels, as persistent supply constraints and strong investor demand continued to support prices. The surge in investment reflects platinum’s limited market size and relatively lower price, which make even modest physical purchases capable of moving the market sharply. Structural annual supply deficit remains a key factor, with South African production, which accounts for roughly 70% of global output, facing challenges from underinvestment and logistical issues. Supply risks could also rise further, as Canada, another major producer, may face 100% tariffs if US President Trump moves forward with a trade deal with China. Demand remains strong in the automotive industry for catalytic converters, driven by the European Union’s reversal of the 2035 combustion-engine ban. Ongoing dollar weakness also underpinned broader precious metals demand.
