Platinum prices have risen alongside Gold and Silver, with the Gold/Platinum ratio now just below 2, a figure not seen since June 2023. However, Platinum has not yet reached its peak price of $2,490 per troy ounce, which occurred at the end of December. Platinum’s ability to align further with Gold is limited. This is mainly because Platinum relies on industrial demand, while Gold is considered a safe haven. The World Platinum Investment Council notes that the Platinum market is expected to stabilize this year, which may limit any significant price increases.

Platinum Price Forecast

The Platinum price is expected to rise to $2,600 by mid-year and reach $2,700 by the end of the year. Palladium, which peaked at just over $1,980 per troy ounce at the end of December, has limited growth potential due to reduced demand from the automotive sector, its main consumer. Palladium prices are expected to hit $2,000 by mid-year and $2,100 by the end of 2026. Platinum has experienced a significant price increase recently, following the upward trend of gold and silver. The gold-to-platinum ratio has tightened to just under 2, a level that hasn’t been observed since mid-2025. This adjustment has corrected much of platinum’s prior undervaluation compared to gold. However, further gains for platinum are likely to be challenging. Unlike gold, platinum is primarily an industrial metal, making its price more dependent on global economic health. Recent manufacturing PMI data from Europe suggests that the economy is still fragile, so we should be cautious about expecting ongoing strong momentum. With the forecast of limited price upside, traders might see the target of $2,600 by mid-year as a potential peak. This indicates that selling out-of-the-money call options or setting up bearish call spreads may be wise in the coming weeks. This strategy allows traders to benefit from time decay if Platinum prices stabilize below recent highs. The supply and demand outlook for 2026 also suggests a more cautious approach. The World Platinum Investment Council does not expect the same supply shortfall as last year. Major South African producers have indicated stable output this year, removing a significant reason for prices to spike.

Palladium Price Challenges

Palladium faces even tighter challenges after reaching a three-year high of over $1,980 at the end of 2025. The weakening demand from the automotive industry is a significant hurdle, especially as global electric vehicle (EV) sales rose to 22% in the last quarter of 2025. This shift continues to reduce the demand for palladium used in catalytic converters. With price targets of only $2,000 by mid-year and $2,100 by the end of 2026, Palladium’s potential for price increase is extremely limited. Traders may consider selling futures contracts near the late-December highs to take advantage of any price declines, given the ongoing transition to electric vehicles. Since Platinum’s gains relative to Gold appear to be nearing their peak, a pair trade could be appealing. We might see the gold-to-platinum ratio widen again, a trend seen historically after it dips below 2. This trade would involve taking a long position in gold derivatives while shorting platinum. Create your live VT Markets account and start trading now.

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