Platinum prices have surged to a four-year high, reaching $1,200.95 per ounce, driven by strong demand and supply constraints. As of now, platinum futures show a year-to-date gain of 31.88% and a monthly increase of 24.69%, making it an attractive investment option.
The World Platinum Investment Council (WPIC) predicts a supply deficit of nearly one million ounces for the year, primarily due to rising industrial demand for automotive catalysts and limited output. This tightening market has led to increased interest in platinum-backed ETFs, which are currently at a 10-month high.
Technically, platinum’s price has climbed from $1,000 to over $1,200 in just one month, supported by strong trading volume. However, with the Relative Strength Index (RSI) at 85.92, indicating overbought conditions, investors should remain cautious of potential pullbacks, particularly around the $1,250 resistance level.
