As investors went on to evaluate the prospect of reduced supply, platinum futures benefited from the gold price rally and its positive effect on bullion prices, rising to more than $1,030 per troy ounce by the end of October, its highest level since May.
Why Is the Platinum Price Rising?
Halfway towards the year's last quarter, bullion prices were supported by widespread demand for safeguarding and significant purchases of precious metals by significant central banks, despite the prospect of a less dovish Federal Reserve the following year.
Meanwhile, industry reports predict a 2% decline in overall mined supply in 2024 due to decreased production in South Africa, which also helped to support prices.
Given the continued substantial need for platinum for catalytic converters in the motor vehicle sector, the supply shortage from the previous year is anticipated to be prolonged.
