After years of subdued performance and trading within a narrow range, platinum may finally be poised for a breakout. The semi-industrial metal—primarily mined in South Africa and used largely in catalytic converters and laboratory equipment—has been historically undervalued, particularly in comparison to gold. Just a month ago, the gold-to-platinum price ratio peaked at 3.6:1, meaning it took 3.6 ounces of platinum to match one ounce of gold.
Since that high, the ratio has narrowed to approximately 3.2:1, with platinum gaining 5% and gold falling nearly 6%. The shift reflects a brightening global economic outlook following the 90-day US-China trade truce, which has weakened gold’s appeal as a safe-haven asset and prompted some investor profit-taking. Platinum, by contrast, has benefited from rising optimism and a renewed search for undervalued assets.
“Eventually, the tightening trading range will yield a breakout,” market analysts suggest. “Only then will we see whether demand from momentum-driven traders can propel platinum higher, or whether gold’s safe-haven status will once again dominate.”
Over the past decade, platinum has averaged around US$955 per troy ounce, with price action largely stagnant. A decisive move above key technical resistance levels—currently around US$1,012 and a long-term downtrend line near US$1,025—is seen as necessary to spark a meaningful rally.
Recent support for platinum has been bolstered by the World Platinum Investment Council (WPIC), which in its latest Platinum Quarterly forecasted a widening supply deficit of nearly one million ounces. It marks the third consecutive year of supply falling short of demand, prompting drawdowns from above-ground inventories. Notably, demand has surged from the automotive sector and Chinese buyers, with jewellery, bar, and coin imports hitting a 12-month high last month due to platinum’s relative price stability and discount to gold.
In the futures market, investor positioning remains cautious. According to the latest Commitment of Traders report from the US Commodity Futures Trading Commission (CFTC), hedge funds and other managed money accounts are maintaining a neutral to mildly bullish stance on platinum. Meanwhile, holdings in platinum-backed exchange-traded funds (ETFs) registered in Western markets have risen to 3.18 million troy ounces—up from an April 2024 low of 2.89 million, but still well below the 2021 peak of nearly 4 million ounces, according to Bloomberg data.
Adding to the focus on platinum this week is London Platinum Week 2025, taking place from May 20 to 22. Hosted by the London Platinum and Palladium Market (LPPM), the event gathers key stakeholders—including miners, refiners, traders, and analysts—to discuss industry trends and future strategies. The conference could further spotlight the metal as investors consider its longer-term value proposition.
As market attention shifts from gold’s meteoric rise, platinum may be set to reclaim its role in diversified precious metals portfolios—provided technical levels give way and fundamental tailwinds continue to build.
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