Platinum prices touched another record high in Wednesday’s session, December 24, extending their rally, as renewed geopolitical tensions, especially between the US and Venezuela, boosted demand for safe-haven assets.
A weakening US dollar, amid growing expectations of further monetary easing by the Federal Reserve next year, is also making precious metals less expensive for other currency holders.
Spot platinum surged past $2,300 per ounce, hitting a record high of $2,378, a 3.4% jump from the previous close. Prices were supported by tight supply conditions, rising investment demand, and a rotation from gold, causing the metal to gain twice as much as the yellow metal in 2025.
Wednesday’s rally marks the 10th consecutive session of gains for the metal, its longest winning streak since 2017, with prices rising over 162% this year, the largest annual advance since at least 1987. Meanwhile, palladium prices rallied another 4% to hit a three-year high of $2,022, taking year-to-date gains to 121%.
According to media reports, platinum is also gaining support over fears of US tariffs or trade restrictions as traders await the outcome of Washington’s Section 232 probe, with more than 600,000 ounces currently held in US warehouses.
In Europe, the European Commission earlier this month published plans to abandon an effective 2035 ban on combustion-engine cars, boosting demand for both platinum and palladium. Both metals are used in automotive catalytic converters, where they help reduce harmful emissions.
On the supply side, disruptions in the world’s largest producer, South Africa, contributed to a third consecutive annual deficit.
In the latest flare-up of geopolitical tensions, US President Donald Trump last week ordered a “blockade” of all sanctioned oil tankers entering and leaving Venezuela, while stating that he is not ruling out the possibility of war with the country.
Gold surges 80%, silver jumps 150% in 2025
Gold has surged 80% this year, supported by elevated central bank purchases and inflows into exchange-traded funds, with total holdings in gold-backed ETFs rising every month this year except May, according to World Gold Council data.
US President Donald Trump’s aggressive moves to reshape global trade, as well as his threats to the Fed’s independence, added fuel to the bull run earlier this year. Investors have also been spurred in part by the so-called debasement trade, a retreat from sovereign bonds and the currencies they are denominated in over fears their value will erode over time due to ballooning debt levels.
Silver’s rally of around 150% this year has been even more spectacular than gold’s, with its most recent advance buoyed by speculative inflows and lingering supply dislocations across major trading hubs following a historic short squeeze in October.
(With inputs from Reuters, Bloomberg)
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.
