As gold prices edge back from recent highs, investors are beginning to take a renewed interest in platinum — a precious metal that has long flown under the radar but may be on the verge of a breakout, according to market analysts.
After years of stagnant performance, platinum has recently been trading in a narrowing range, indicating a potential move on the horizon. Analysts suggest that the metal is poised for a breakout as technical pressure mounts, and market fundamentals begin to shift in its favor.
Once a staple in industrial applications like catalytic converters and laboratory equipment, platinum is primarily mined in South Africa and has long been overshadowed by gold. The gold-to-platinum price ratio recently hit a record of 3.6 ounces of platinum to one ounce of gold, underscoring just how cheap the white metal has become. That ratio has since narrowed to 3.2, with platinum gaining around five percent while gold has declined by nearly six percent.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that platinum’s recent strength has been supported by improving economic sentiment following the 90-day trade truce between the U.S. and China. “Eventually, the narrowing trading range — which is currently being challenged to the upside — will yield a breakout,” Hansen said. “Only then will we see if demand from technically driven traders is enough to push prices higher.”
Platinum has averaged $955 per troy ounce over the past decade, with analysts now eyeing resistance levels at $1,012 and $1,025. A break above these levels could mark a significant technical shift for the metal.
Fundamentals are also supporting a more bullish outlook. The World Platinum Investment Council recently forecast a deepening market deficit, with demand outstripping supply by nearly one million troy ounces in 2025. This marks the third consecutive year of declining above-ground inventories. Chinese demand — particularly for jewellery and investment products like bars and coins — has surged, with April imports reaching their highest level in a year.
Meanwhile, COMEX futures data shows hedge funds and other managed money accounts maintaining a neutral to slightly bullish stance. Platinum-backed ETFs have also seen modest inflows, with holdings rising to 3.18 million troy ounces from an April low of 2.89 million, though still below the 2021 peak of nearly 4 million ounces.
Industry attention is now focused on London Platinum Week 2025, currently underway. The annual event, hosted by the London Platinum and Palladium Market (LPPM), brings together key players — from miners and refiners to traders and analysts — to assess market developments and set future strategies. The outcome may further influence market sentiment as platinum seeks to reclaim its place in the spotlight.
