Platinum hits record high, surpassing $2,500

By Burhan Sansarlioglu and Gokhan Ergocun

ISTANBUL (AA) - Platinum reached an all-time high in international markets, rising to $2,517.7 per ounce as it joined the broader rally in precious metals seen since the beginning of the year.

With the US administration emphasizing its control over Greenland and taking steps toward a potential new tariff war, risk perception in the global market is increasing while demand for safe-haven assets continues.

In addition to developments regarding Greenland, the US attack on Venezuela and geopolitical risks stemming from Iran have also fueled a flight from other assets.

Furthermore, predictions of continued interest rate cuts by the Fed, concerns about the central bank's independence and the Fed chairman's remarks regarding certain groups are causing sharp increases in precious metal prices.

The increased risk perception in the global market, reflected in the buying trend for gold and silver, also impacted platinum.

Strong industrial demand and supply-side constraints drove the sharp increases in prices.

Following these developments, platinum climbed to a record $2,517.7 per ounce before stabilizing around $2,472.

The metal, which closed at $2,054.55 last year, has provided investors with a return of over 20% so far this year.

- Rate cuts, supply, demand

Zafer Ergezen, a futures and commodities market expert, told Anadolu that the main driver behind the rise in platinum prices is the interest rate cuts and expectations of economic recovery in 2026.

Ergezen noted that there are expectations of recovery in the Far East, particularly in the Chinese economy.

"There was previously an excess supply of platinum, but recently a change has been observed," Ergezen said, adding: "The decrease in supply is partly due to government policies.

"However, the biggest factors are energy shortages and floods in South Africa, which disrupted mine operations and tightened the supply. This is directly affecting pricing."

Ergezen added that the automotive sector remains very strong, especially in the Far East, boosting demand for both platinum and palladium.