In the week when the gold price fell below the mark of 3,300 US dollars, platinum and palladium achieved remarkable price gains. Platinum rose by 5.7 percent to about 1,339 US dollars, while palladium even increased by 8.1 percent to around 1,133 US dollars.
Causes of the Price Increases
These price increases reflect the growing consideration of geopolitical risks and supply shortages by the markets. In particular, a persistent market deficit is expected for platinum: for the period from 2025 to 2029, experts forecast average annual deficits of about 727,000 ounces (koz), which corresponds to about nine percent of the average demand. A small deficit is also expected for palladium in 2025, before a slight surplus could emerge in the following year.
Factors Influencing the Market
- Persistent market deficits in platinum despite an uncertain global economic environment.
- Decreasing above-ground stocks.
- Geographical dislocations in supply and demand.
- Growing demand from the Chinese jewelry market.
- General geopolitical uncertainties and macroeconomic trends such as de-dollarization, which lead investors to increasingly turn to precious metals.
While gold continues to be regarded as a safe haven despite the price drop, these white metals are coming more into the focus of investors due to their tight supply situation and geopolitical tensions.
In summary, the markets are increasingly pricing in geopolitical risks as well as supply shortages in platinum and palladium – which is reflected in significant price gains for these metals – even though gold is currently under pressure.