Platinum Poised to Outshine Palladium Amid Tight Supply and New Demand

Platinum prices have been under pressure in recent times due to rising oil prices, a stronger dollar, and higher Treasury yields. As a result, platinum (XPL) has dropped towards $1,725 while palladium (XPD) fell near $1,290. However, despite the current short-term headwinds, platinum is expected to outperform palladium in the long term.

The main reason for this bullish outlook on platinum is its tight supply and new industrial demand. In contrast, palladium may test $1,200 as it faces continued short-term selling pressure.

Rising rate hike expectations remain a major headwind for both metals. However, platinum's strong fundamentals are expected to keep it ahead of palladium in the long term.