Strong demand for jewelry drives platinum prices to a 10-year high
Platinum prices soared to their highest level since 2014 due to strong demand from Chinese jewelry buyers, rising nearly 3% on Thursday. Palladium prices also increased by over 5%. Analysts pointed out that the shortage of platinum supply and the substitutability of palladium prices may bring positive momentum. Meanwhile, gold prices remained stable as investors focused on the tensions between Israel and Iran and the Federal Reserve's interest rate policy. The current platinum price is $1,381.26 per ounce, and palladium is $1,101.64
According to Zhitong Finance APP, platinum prices have risen to their highest level since 2014, driven by strong demand from Chinese jewelry buyers who prefer platinum over gold. On Thursday, platinum prices surged nearly 3% at one point before giving back some gains, while palladium rose more than 5%. Gold prices remained stable as investors awaited clearer signs that tensions between Israel and Iran would not escalate again, as well as more clarity on the Federal Reserve's interest rate path.
Global X ETFs analyst Justin Lin stated, "The recent surge in Chinese investment and jewelry replacement highlights the issue of platinum supply shortages. There is an inherent connection between palladium and platinum, as they can substitute for each other in automotive catalysts based on relative prices, so we can expect that the rise in platinum will bring some positive momentum to palladium."
Platinum prices soar to a decade-high
So far this year, gold prices have surged more than a quarter, but in recent months, the strong upward momentum has weakened as trade tensions eased and signs emerged that buyers favored lower-priced precious metals. Strong purchases by major central banks and expectations of interest rate cuts have also supported gold prices, which are currently about $160 away from record highs.
Meanwhile, U.S. President Donald Trump stated that U.S. and Iranian officials will meet next week, and the conflict between Israel and Iran has effectively ended, but he still warned that fighting "could start very soon."
Federal Reserve Chairman Jerome Powell indicated that the Fed is still working to determine the impact of Trump's tariff agenda on consumer prices. Signs of moderate inflation may prompt the Fed to implement monetary easing policies earlier than expected, which would benefit non-yielding gold. Reports suggest that Trump is dissatisfied with the Fed's slow rate cuts and is considering appointing Powell's successor before September or October.
As of the time of writing, platinum prices surged 2% to $1,381.26 per ounce, palladium prices rose 3.2% to $1,101.64 per ounce, gold prices increased 0.1% to $3,336.90 per ounce, and silver prices rose 0.3%. The Bloomberg Dollar Spot Index fell 0.2%
