Editor’s Note
This article highlights the remarkable performance of precious metals, particularly gold and platinum, in a year marked by economic and geopolitical uncertainty. It explores the factors driving their prices, including investment demand, industrial uses, and market dynamics.
Precious metals have had an impeccable year amid persistent economic uncertainties and geopolitical risks. For example, gold has recorded 50 new all-time highs, rebounding by more than 60% since the beginning.
With the sharp rise in the price of gold, platinum has become one of the preferred alternatives for jewelry and investment. Furthermore, strong demand for hybrid vehicles, Federal Reserve policy, and supply constraints have kept platinum prices high.
At the time of writing, it was trading at $2,000 after a slight pullback from the 17-year high reached in the previous session. Since the beginning of 2025, it has rebounded by approximately 115%.
The platinum price is on track to record its second consecutive week of gains. Its value has more than doubled this year and is set to be the best since 1987. The market has been shaped by growing demand from the automotive and jewelry sectors against a backdrop of tight supply.
Additionally, the new Chinese futures contract has contributed to the recent rally. In late November, the Guangzhou Futures Exchange launched platinum and palladium futures contracts with the aim of increasing its influence on global commodity pricing. The choice of these two precious metals was particularly crucial due to their role in the jewelry and automotive industries.
In its annual forecast, the World Platinum Investment Council (WPIC) stated that growing demand from China for platinum bar and coin investments will drive the expected record 47% year-on-year growth.
However, in the coming year, WPIC forecasts a more balanced market with a slight surplus. Therefore, the recorded rise in the platinum price could moderate in the short to medium term. According to Morgan Stanley, this precious metal will likely average $1,775 per ounce.
Platinum Price has delivered remarkable performance in recent weeks; it reached its highest level since July 2008 this month before pulling back slightly. It has been trading in the green for seven consecutive sessions, equivalent to a gain of over 15%.
An examination of its daily chart indicates the continuation of the bullish momentum as it continues to trade above the short-term 25-day and medium-term 50-day moving averages. Furthermore, it has remained stable above the major and minor bullish trendlines.
However, with an RSI of 80, it is deeply in overbought territory and warrants a healthy correction. With profit-taking mode activated, sellers have a chance to bring it back to $1,800 while bulls gather enough momentum to reach a new 17-year high in the psychologically crucial $2,000 per ounce zone. Below this threshold, bulls will be inclined to defend support along the 25-day moving average at $1,690.
