Platinum's Decade-Long Range Breaks as Supply Deficits and Macro Trends Align
Platinum's price has broken out of its decade-long range due to supply and demand imbalances. Edward Sterck, Director of Research at the World Platinum Investment Council (WPIC), attributes this shift to persistent platinum supply deficits and a broader precious-metals rally driven by investors seeking hard assets with value independent of the US dollar.
The platinum market has been in deficit for three consecutive years, with above-ground inventories falling to unsustainable levels. This led to higher prices, which encouraged holders to sell their metal. The rally continued into January 2026 before correcting and trading around $2,000 per ounce for a period.
However, the conflict in the Middle East has altered the macroeconomic environment for precious metals. Higher oil prices have increased inflation expectations and supported the US dollar, weighing on commodity prices. Although platinum demand is affected by Middle Eastern oil refineries' use of platinum-based catalysts, Sterck notes that this impact is relatively small.