What’s driving platinum higher today (December 26)?

Traders Union
All News
Financial News
Platinum Surges 5.15% Today

Highlights

Platinum faces a persistent structural supply deficit, with a shortage projected to reach 692,000 ounces in 2025, about 9% of annual demand.
Industrial demand remains the primary driver of platinum liquidity, while the EU's reversal of the 2035 combustion-engine ban has altered market dynamics.
Indian investors lack access to domestic platinum ETFs, and platinum market liquidity continues to trail significantly behind gold and silver.

Supply deficit and policy shifts drive demand-led liquidity dynamics

Platinum prices have been supported by a persistent structural supply deficit, with the market experiencing a shortage for three consecutive years and a supply gap projected to reach 692,000 ounces in 2025, equivalent to roughly 9% of annual demand. Industrial demand remains the main driver of liquidity, while the EU's reversal of the 2035 combustion-engine ban and changes to platinum trading limits on China's Guangzhou Futures Exchange have influenced market dynamics. Indian investors currently lack access to domestic platinum ETFs, though international options exist through overseas platforms. The market continues to show lower liquidity than gold or silver.

Anton Kharitonov, expert at Traders Union, believes platinum’s recent rally is built on fragile ground. He notes that technical signals show strong momentum, but overbought readings in RSI and other oscillators raise concerns of a looming correction. Kharitonov points to persistent supply deficits and European regulatory shifts as drivers, yet warns about platinum’s lower liquidity compared to gold or silver. In his view, a sudden reversal below $1,995.96 could trigger a sharper downturn. "Despite bullish headlines, traders should remain skeptical and tighten risk controls at these levels."

Viktoras Karapetjanc, expert at Traders Union, sees platinum in a robust uptrend. He highlights the persistent supply deficit and recent supportive moves from the EU and China, which reinforce structural demand. Karapetjanc notes that even with limited ETF access for Indian investors, the global market context offers multiple growth avenues. He expects further gains and considers a price breakout above $2,410.26 probable. "With bullish structure intact and liquidity improving, I believe further growth is the dominant scenario."

Jainam Mehta, market strategist, observes platinum showing strong technical momentum but warns about potential exhaustion due to overbought conditions on most oscillators. He notes heightened volatility and a divergence between momentum and price action, which could set up tactical short-term pullbacks. Mehta thinks a consolidation within the projected range remains likely in the absence of a clear catalyst. "If resistance breaks, a momentum surge could follow — but sharp corrections are equally plausible."

Overbought signals emerge as momentum diverges with volatility

Momentum is strong as indicated by a bullish ADX and a positive MACD reading. However, most oscillators including RSI (92.26), Stoch RSI, CCI, and BBP all signal overbought conditions, revealing dominant buyer enthusiasm. The Awesome Oscillator supports the uptrend, while today’s price action shows platinum gaining $116.37, up 5.15% from the previous close, with no opening gap and the price currently near today’s high. Daily volatility has been high, and intraday tone reflects robust strength toward session highs. There is a clear divergence with momentum and oscillators both showing strong upward pressure but warning of overheating, which traders should monitor closely.

Last time, analysts noted that platinum maintained a strong bullish trend across all timeframes, supported by prices holding well above key moving averages and momentum indicators like MACD and ADX confirming the uptrend. Oscillators including RSI signaled overbought conditions as the nearest dynamic support aligned with the Ichimoku Kijun level and resistance aligns with the recent session high, suggesting that while strength remains, the market may be vulnerable to near-term profit taking.

Source of Data: XPT Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.