Platinum price is set to record its third straight quarter of gains as the financial markets ready for Q4’25. The asset has rallied by close to 80% year-to-date as precious metals benefit from heightened safe-haven demand.
Notably, its price increase has been more aggressive in recent months; rallying by about 55% in the past 4 months. In comparison, gold price has been up by 16% since the start of June. In addition to the investment shift from the more expensive gold, market tightness is set to bolster platinum price further.
Platinum price bull-run is far from over
Precious metals, which are conventional safe-haven assets, have been on a steady surge in recent sessions as a US government shutdown looms. Among other factors, the ballooning US debt has been a key driver of precious metal rallying.
This safe-haven appeal has soared further ahead of the new fiscal year on 1st October. Financial markets are concerned over the ceasing of all non-essential operations if Congress does not reach an agreement on a short-term funding bill before midnight on Tuesday, 30th September.
Additionally, platinum price continues to benefit from its market tightness. The supply of this metal, which is significant in the industrial space, is largely from recycling and mining. Higher operational costs, low investment, and a drop in the average ore quality have caused the metal’s supply to decline by about 16% since hitting its peak in 2021.
Interestingly, the metal’s demand remains robust. From the soaring demand for hybrid vehicles to its use in electrical and glass subsectors, the deficit is steadily increasing.
In the ensuing sessions, the platinum price will remain on a steady uptrend as it reacts to the persistent economic uncertainties and expectations of a dovish Fed. Additionally, the release of US jobs data on Friday may be affected by the possible government shutdown. Analysts expect the figures to highlight soft jobs growth in September. A weaker employment report would support the case for further monetary policy easing during the Fed’s next meeting in October.
Platinum price technical analysis
Platinum price entered the new week on a high after recording eight straight weeks of gains. Early on Monday, it rallied past $1600 for the first time since March 2013; hitting an intraday high of $1,625. At the time of writing, it was trading at $1,605.
A look at its daily chart points to a steady uptrend even as a corrective pullback looms. At an RSI of 77, the precious metal is deep in the overbought territory. As such, it will likely drop to trade within the range of between Monday’s intraday high of $1625 and the support level of $1,497. Even with a further pullback, it will likely hold steady above the 25-day EMA at $1,437 as the bulls remain in control.
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