Platinum price rises further on supply chain fears

Platinum prices gained for the second day on Monday lifted by broader gains in energy and industrial metals markets.

The price of platinum – used in the automotive industry – rose 0.87% to $1,030.5 an ounce on Monday. The precious metal surged by more than 4% on Friday 8 October.

Rising prices of oil, coal, and gas were signs of supply chain issues and inflation fears which was positive sentiment for commodities, including platinum, Wahyu Laksono, the founder of Jakarta-based foreign exchange trading community platform, told

Price movement

“Platinum’s rebound to above $1,000 is just matter of time,” he added.

Platinum price traded above $1,300 an ounce in mid-February as countries gradually reopened and returned to pre-pandemic life, which was bullish for metals’ demand, including platinum. As the metal is used, the automotive industry expectation that a recovery in economic means travelling would resume and new jobs were added, supporting demand for cars.

But the metal failed to maintain its gain and had been traded below $1,000 an ounce following a forecast from the World Platinum Investment Council in September of a surplus in platinum market due to supply ramp-up amid strong demand.

Semiconductor utilisation

Analysts at ANZ Research wrote in today’s note that semiconductor producers in Asia are operating at very high levels of capacity utilisation, but the global chips shortage will nonetheless extend well into next year, adding further uncertainty to uneven recoveries.

“Add in energy shortages, and the economic landscape is materially more sober than the optimism that accompanied the early stages of global recovery,” the analysts wrote.

Global chips shortage had hampered automotive production, hitting platinum prices.

Read more: Is platinum still a buy in 2021 after hitting multi-year highs

Ready to get started? Download

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.


Leave a Reply

Your email address will not be published. Required fields are marked *