Africa-Press – Lesotho. The ounce price of platinum reached a 10-year high at $1,352 on Friday amid sharp market fluctuations due to trade tensions, geopolitical risks, and uncertainty over the Fed’s future policies.
The price surge marked platinum’s highest level since September 2014, reflecting an 11-year peak and a 43% gain since the start of the year. Prices later stabilized around $1,290 per ounce.
Supply constraints and increased demand led to sharp rises in platinum, while uncertainties over US President Donald Trump’s tariff plans fueled growth concerns, giving rise to the demand for safe-haven assets.
Trump’s efforts to “save” the US auto industry through tariffs have also lifted demand for platinum and palladium—both of which are key materials used in internal combustion engine vehicles.
Silver prices also rose due to Trump’s policies and the escalation of geopolitical tension.
The US–China tariff tensions and the US’ sweeping reciprocal tariffs are among the factors affecting commodity prices.
Tariff concerns also triggered a rise in shipments, which led to an increase in freight rates.
One unexpected factor influencing market sentiment was Trump’s public falling out with tech entrepreneur and the world’s richest person, Elon Musk.
Their social media clashes sparked speculation that electric vehicle (EV) incentives might be rolled back or eliminated—a move that would slow EV adoption and boost reliance on gasoline-powered cars, which use platinum in catalytic converters.
Increased platinum imports by China in April also contributed to the price surge, as demand for platinum jewelry continues to grow.
Weibin Deng, Asia-Pacific head of the World Platinum Investment Council, said in a recent statement that the rise in platinum was due to its affordability compared to gold. As gold rose due to heightened geopolitical risks, many jewelers have pivoted towards platinum over gold.
Deng also said the demand for platinum jewelry will rise by 7% in Europe and by 8% in North America this year.
For More News And Analysis About Lesotho Follow Africa-Press
