Platinum Hits Highest Since 2014 on Global Supply Squeeze

Platinum prices have surged to their highest levels since 2014, reaching over $1,400 an ounce, driven by supply shortages, speculative buying, and strong demand from Chinese investors and jewelry buyers. This tightness in the London and Zurich markets has led to a spike in borrowing costs for platinum, reaching approximately 13% annually, a sharp increase from near-zero rates. Palladium prices have also risen alongside platinum due to their substitutability in automotive catalysts, with both metals benefiting from the supply deficit spotlighted by increased Chinese demand. Gold prices have remained relatively stable, supported by a weakening U.S. dollar amidst President Donald Trump's critical stance on Federal Reserve Chair Jerome Powell and his push for interest rate cuts. Trump's recent efforts in brokering a ceasefire between Israel and Iran have eased geopolitical tensions, which has somewhat limited gold's upside despite the dollar weakness. Overall, the precious metals market is influenced by tight supply conditions, geopolitical developments, and uncertainty regarding U.S. monetary policy.