As per the technical chart, platinum prices have stayed trapped within a rather small range despite persistent market shortfalls. Over the last three years, the precious metal's price has ranged from $850 to $1,150 per ounce, with an average of about $962/oz, which is near the present spot price.
Despite challenging market conditions, this steadiness has continued, confounding market observers who anticipated a price increase.
Platinum (XPTUSD) Bullish Possibility
According to some prominent analysts, high above-ground stockpiles are the main cause of this lack of increasing momentum.
By the end of 2023, these holdings are expected to reach approximately 4.034 million ounces, according to information compiled by the World Platinum Investment Council.
Even if the autocatalyst scrap supply is anticipated to rebound, the projection for 2025 indicates that the platinum industry will continue to be undersupplied.
Moreover, cars being discarded roughly 15 years after manufacture is usually linked to additional supplies from used catalytic converters.
This cycle was upset by the pandemic, which slowed the production of new cars between 2020 and 2022, extending the lifespan of older cars.
