Platinum prices climbed to another record on December 24, extending an already strong rally as global investors appeared to move towards safe-haven assets amid rising geopolitical tensions and supply concerns.
In the international market, spot platinum crossed $2,300 an ounce and touched a new all-time high of $2,378, marking a 3.4% rise from the previous close. The move came as renewed tensions, particularly between the United States and Venezuela, unsettled global markets.
A softer US dollar also played a role in lifting precious metal prices. Expectations of further monetary easing by the Federal Reserve next year have weighed on the currency, making metals priced in dollars relatively cheaper for buyers using other currencies.
This combination of geopolitical unease and currency movement has kept investor interest in platinum firm.
Platinum has emerged as one of the standout performers among precious metals this year. Prices have risen more than 162% so far in 2025, making it the metal’s strongest annual gain since at least 1987. The rally has also outpaced gold, with platinum gaining roughly twice as much as the yellow metal over the same period.
Wednesday’s surge marked the 10th straight session of gains, the longest winning streak for platinum since 2017.
Market participants point to tight supply conditions, rising investment demand, and a gradual rotation of funds from gold into platinum as key factors supporting prices.
Palladium prices also extended their gains, rising 4% on December 24 to hit a three-year high of $2,022 an ounce. The metal is now up 121% so far this year, reflecting similar supply-side pressures and improving demand expectations.
Both platinum and palladium are widely used in automotive catalytic converters, where they help reduce harmful vehicle emissions.
In Europe, demand sentiment received an additional boost after the European Commission earlier this month outlined plans to move away from an effective 2035 ban on combustion-engine cars. The policy rethink is seen as supportive for platinum-group metals, given their continued role in conventional vehicle technology.
On the supply side, disruptions in South Africa, the world’s largest platinum producer, have contributed to a third consecutive annual supply deficit, tightening the global market further.
Adding to the uncertainty, media reports indicate that platinum is also gaining support from concerns around potential US tariffs or trade restrictions. Traders are closely watching the outcome of Washington’s Section 232 probe, with more than 600,000 ounces of platinum currently held in US warehouses.
