Platinum price surges to highest since 2021 as market tightens

Platinum price extended its rally for a sixth straight session on Monday, climbing to its highest level in over four years amid signs of growing market tightness.

Spot platinum rose 2.7% to $1,200.95 per ounce, its highest since May 2021, after posting a 10% gain last week.

“It’s supported by a combination of tight supply expectations, improving industrial sentiment, and technical follow-through from the broader precious metals rally,” Alexander Zumpfe, a trader at Heraeus Metals Germany, told Reuters.

The bullish momentum aligns with expectations of another annual supply deficit.

In early 2025, a substantial amount of platinum flowed into the United States because investors feared the metal would face tariffs under President Trump, also pushing up the cost of borrowing the metal.

Although the platinum that poured into U.S. warehouses is now moving back out, lease rates in London and Zurich vaults have remained persistently high.

While these rates typically hover near zero, this year they’ve surged to record levels—one‑month lease rates are now above 13.5% on an annualized basis.

“There’s been growing tightness since December,” Ed Sterck, director of research at the World Platinum Investment Council told Bloomberg.

“The outflows from NYMEX should soften that, but fundamentally the market is still headed for a deficit.”

Adding to the squeeze, holdings in platinum-backed exchange-traded funds (ETFs) have reached a 10-month high, while spot prices are now trading above futures.

A near-million-ounce deficit in 2025

The World Platinum Investment Council (WPIC) projects a supply deficit of nearly 1 million ounces this year, driven by strong demand and constrained output.

Platinum is primarily used in catalytic converters for vehicles, as well as in laboratory equipment and as an investment asset. Its 32% price increase year-to-date has outpaced gold’s 26% rise.