Platinum Climbs to Nearly 1-Year Highs

Platinum climbed past $1,000 per troy ounce, hitting its highest level in almost a year, driven by supply shortage fears and signs of robust demand.

The first quarter of 2024 saw total platinum output at the second-lowest level since the World Platinum Investment Council began data collection.

Meanwhile, automotive industry demand for the metal was the strongest in seven years.

The auto sector consumed a significant 832,000 ounces of the metal in the first three months of 2024 amid slower substitution towards PGM-free vehicles, as electric car taxes rose and investors hesitated to switch to more expensive green alternatives.

U.S. President Biden has recently announced plans to introduce another hike on levies on EVs from top producer China.

Investment demand for the commodity also picked up, with traders hedging against inflationary risks.

According to the World Platinum Investment Council, platinum will be in an average annual deficit of 500,000 ounces until 2028.