Platinum rises but remains below December record – Commerzbank

Platinum prices surged alongside Gold and Silver, narrowing its undervaluation relative to Gold, with the Gold/Platinum ratio now just under 2, a level last seen in June 2023, Commerzbank's commodity analyst Carsten Fritsch notes.

Industrial demand limits further Platinum upside

"The price of Platinum also rose sharply in the wake of Gold and silver. However, Platinum has not yet returned to the record level of $2,490 per troy ounce reached at the end of December. The Gold/Platinum ratio is now just under 2, which was last the case in June 2023. The Platinum price has thus significantly reduced its undervaluation relative to the Gold price."

"Further catching up with Gold is likely to become more difficult from now on, as Platinum, unlike Gold, is not a safe haven but is mainly dependent on industrial demand and thus on economic developments. In addition, according to the World Platinum Investment Council's forecast, the Platinum market is no longer likely to be undersupplied this year. Following the sharp rise in Platinum prices, we see only limited upside potential."

"The Platinum price should be trading at $2,600 by the middle of the year and $2,700 by the end of the year. This also applies to Palladium, whose price reached a three-year high of just over $1,980 per troy ounce at the end of December. Due to weakening demand from the automotive industry, by far the most important sector for Palladium demand, the upside potential for Palladium is likely to be even more limited. We expect the price of Palladium to reach $2,000 by mid-year and $2,100 by the end of 2026."