Platinum Catching Up With Gold

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Platinum Catching Up With Gold

Platinum Is Catching Up With Gold

The Platinum's price continues to rise, with no end in sight. The precious metal was last seen near the $1400 handle, which is a record itself. In fact, such higher prices of Platinum were only last seen in 2014.

According to Commerzbank, the Platinum prices are now playing catch-up with the Gold. As of now, Gold is above the $3K handle, which means Platinum still has a lot of distance to catch up.

Platinum Up By 40% Within Weeks

But what's important is that Platinum has gained almost 40% in a span of 6 weeks. This is a sign that Chinese consumers are now more interested in Platinum Jewellery as Gold is now more expensive.

However, this shift towards platinum has also led to a sharp rise in its prices. Nonetheless, the Platinum imports from China were seen at the highest level in almost a year.

But this massive rally in the Platinum price also calls for caution. After all, the speed of the bullish rally was a little too much and may lead to some correction in the coming months.

According to Commerzbank, the Platinum market is going through a supply deficit, but it's nothing new! In fact, it has repeated itself throughout the years.

By the 2023 end, the prices of Platinum were near $900, and the market also went through a supply deficit at that time.

For now, the reason why Platinum is in so much demand is that it's available at a discount as compared to Gold. Many consumers now view the Gold as too expensive and now switching to Platinum.

Meanwhile, the prices of Gold are also showing signs of fear & struggle as there are talks of potential rate cuts. In fact, the US president is asking for 1% interest rate in the US and is also mounting pressure on the US Federal Reserve.

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