Platinum prices have recently jumped to a near 11-year high of $1,350 per troy ounce before falling back below $1,300. The gap between platinum and gold has shrunk to less than $2,050 per troy ounce, the smallest difference in three months. Recent trading patterns show signs that the price increase might be slowing down. Platinum ETFs tracked by Bloomberg have seen significant outflows, with holdings dropping nearly 190,000 ounces in just a week. This nearly cancels out the inflows since the start of the year. ETF investors seem to be taking advantage of high prices by selling their shares. This analysis provides market data and insights for informational purposes only, and suggests careful research before making any investment decisions. The recent spike in platinum prices was quick and sharp—possibly too sharp for its own good. Prices reached levels not seen since mid-2013, just below $1,350 per troy ounce, but soon fell back under $1,300. Although this still represents a strong gain, the speed of the decline indicates a lack of sustained demand or buying support. The shrinking gap between platinum and gold, now below $2,050 per ounce, suggests the increase might have been excessive in relation to market conditions. This gap generally serves as an indicator of value within the precious metals market, and it’s notable that this spread is currently at its tightest in three months. The selling from exchange-traded funds is significant. In just one week, around 190,000 ounces were sold. This selling almost wipes out all the inflows since January. The message from ETF holders is clear: they’ve achieved their goals from the rally and are now moving on. This doesn’t necessarily indicate a loss of faith in platinum’s long-term potential; instead, it’s about locking in profits after a sharp increase. The fact that such large selling happened while prices stayed high shows limited confidence in the recent rise. Trading patterns indicate that while momentum drove prices up, it lacked solid buying interest across the industry. We have also noticed a slight decline in trading volumes during the upward movement, which isn’t a good sign if this was the start of a larger rally. Typically, fast price increases followed by light trading and selling tend to create volatility as the market tries to find a more stable level. In this situation, it’s wise to be cautious. Instead of acting quickly, we should adopt a more cautious approach. It’s important to wait for more confirmation before concluding that this correction is over. If prices rise again but fail to reach the recent high, that would suggest a temporary peak. Should ETF selling continue this week, especially as prices hover around $1,280–$1,300, it could push prices even lower. We should also consider the larger economic context. Key inflation data and central bank actions continue to impact commodity markets. Any significant changes in US or European inflation expectations could greatly influence platinum prices. We’re closely monitoring changes in options markets related to platinum. If the premiums on derivatives start to increase without a rise in spot prices, it might indicate hedging instead of new investments. This often leads to price corrections as traders reduce their exposure rather than build on it. Rather than trying to chase prices—especially given the recent aggressive selling by ETF holders—it makes more sense to maintain a balanced view. We should watch positions closely and see if the $1,250–$1,280 range holds as a support level. There could be opportunities ahead, but current indicators don’t yet suggest a strong bias in either direction.

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