Platinum's Technicals Show More Upside, As Valterra Makes A Strong Debut

Platinum prices surged to their highest point in four years, reaching $1,226 per ounce on Tuesday, following substantial gains throughout the second quarter. A sharp market squeeze, driven by a lack of physical supply and growing investor demand for precious metals, is fueling the gains.

"It's supported by a combination of tight supply expectations, improving industrial sentiment, and technical follow-through from the broader precious metals rally," Alexander Zumpfe, a trader at Heraeus Metals Germany, told Reuters.

Physical market tightness has only intensified since the latest U.S. elections. President Donald Trump's re-election drove demand from investors fearing tariffs. Although the metal is now slowly moving back out, borrowing costs remain elevated. One-month lease rates spiked above 13.5% annually, a rate not seen in decades. This stress is most visible in European vaults, where demand continues to outpace available supply.

"The outflows from NYMEX should soften that, but fundamentally the market is still headed for a deficit," Ed Sterck, research director at the World Platinum Investment Council (WPIC), said to Bloomberg.

The WPIC forecasts a near one-million-ounce supply shortfall this year, citing steady demand from the automotive sector, industrial users, and ETFs, whose holdings are now at a 10-month high.

Technically, the breakout is significant. Platinum's move above the $1,050–$1,100 resistance range confirms a reversal from its long-term consolidation phase, which began in mid-2016.

Platinum spot price per month 2000-present, Source: TradingView

The last month's close above this range, coupled with strong volume and momentum, marks a bullish signal. The price is already above the closing monthly prices of 2021, and retaining these levels until the end of this quarter would bring the price close to the long-term resistance around $1,400 per ounce.

It is worth noting that platinum still trades far below its all-time highs from 2008, when, before the Great Recession, it exceeded $2,000 per ounce.

The ongoing rally has helped platinum equities, particularly pure plays like Valterra AGPPF. Formerly known as Anglo American Platinum (AMPLATS) , Valtera recently debuted as a standalone entity, following the miner's restructuring effort.

Since then, the stock has outperformed the market, returning over 17% during the first ten trading days.

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