Platinum price has been on the rise this week, reaching a high of $988 on Wednesday, its highest point since December. This surge in price is part of a broader trend in the metals market, with precious and industrial metals like gold, silver, iron ore, and copper all seeing significant increases in value.
Investors are particularly focused on the electric vehicle (EV) industry, driving demand for metals like platinum. While global EV sales are expected to rise, the transition to EVs may be slower than anticipated, leading to continued demand for Internal Combustion Engine (ICE) vehicles.
Recent data from the World Platinum Investment Council shows that the platinum industry will remain in deficit this year, with demand outpacing supply. The council expects this trend to continue, with a deficit of 408 koz projected for 2024.
Industrial and manufacturing production is also on the rise, with the US and Chinese manufacturing sectors experiencing growth. This increased demand for metals, combined with ongoing inflation concerns in the US, has made precious metals like platinum a safe haven for investors.
Looking at the technical indicators, platinum’s price is bullish and is expected to continue rising. The next key resistance level to watch is $1,013, with further gains possible up to $1,132, a 15% increase from the current level.
Overall, the outlook for platinum remains positive, with the potential for significant gains in the coming months. Investors will be closely watching for further developments in the metals market as demand for precious and industrial metals continues to increase.
