Platinum prices have been on quite a ride in June 2025. Earlier this month, the metal surged to levels not seen in over a decade, reaching highs above $1,330 per ounce. This sharp rise marked about a 45% increase since the start of the year and was driven by several key factors.
One major reason behind platinum’s rally is a tightening supply. Mining output is expected to drop by around 6% this year, reversing gains from previous years and creating a noticeable shortage in the market. At the same time, demand remains strong, especially from countries like China and India where industrial use—such as for automotive catalytic converters—and emerging technologies like hydrogen fuel cells are pushing consumption higher.
Investors also started seeing platinum as an alternative safe haven compared to gold. The ratio between gold and platinum prices fell to its lowest point in three years, making platinum more attractive for those looking to diversify their portfolios.
However, after hitting these peaks, platinum prices pulled back slightly toward mid-June. This retreat was influenced by rising geopolitical tensions in the Middle East that unsettled global markets along with hawkish signals from central banks like the Federal Reserve tightening monetary policy. These factors combined put pressure on commodity prices broadly and caused some profit-taking among investors.
Despite this recent dip from record highs near $1,390 per ounce down closer to $1,250-$1,300 levels later in June, many analysts remain optimistic about platinum’s outlook given ongoing supply deficits projected over coming years. The market continues watching how economic shifts and geopolitical developments will shape demand patterns moving forward.
In short: Platinum has experienced historic gains fueled by supply shortages and strong industrial demand but faces near-term volatility due to global uncertainties affecting investor sentiment across commodities markets alike.