From Safe Haven to Industry: Platinum Price at $1,500 on Powell, Shifting Investor Flows from Gold
A surge in Chinese demand and expectations of easier monetary policy are pushing investors out of gold and into platinum, which has now...
Quick overview
- Investors are shifting from gold to platinum due to rising Chinese demand and expectations of easier monetary policy.
- Platinum prices have reached historic highs, climbing to $1,528.40 after a recent 5% surge.
- The shift is driven by changing economic sentiments and anticipated U.S. rate cuts, which favor industrial metals.
- China now accounts for 64% of global demand for platinum bars and coins, marking a significant change from previous years.
A surge in Chinese demand and expectations of easier monetary policy are pushing investors out of gold and into platinum, which has now climbed to historic highs.
Accelerated Shift Toward Industrial Metals
In a decisive move, investors are increasingly rotating away from gold, the traditional safe-haven asset, and into more industrially relevant metals such as silver and platinum. This shift has become especially clear in recent weeks, with platinum standing out as one of the market’s strongest performers. Today, platinum prices soared 5% in a single session, climbing to $1,498.20 before futures extended the rally to $1,528.40 — a new all-time high.
Platinum Chart Daily – Resuming the Uptrend Again
The rally underscores a broader transformation in sentiment. Gold, once the centerpiece of defensive positioning, has struggled under the weight of profit-taking and overbought conditions. Meanwhile, metals with vital industrial applications are attracting inflows, as they align more closely with global economic recovery themes and long-term structural demand.
Platinum’s Four-Week Rally and Policy Influence
Platinum’s recent four-week surge has been fueled not only by demand but also by changing expectations around U.S. monetary policy. Remarks by Federal Reserve Chair Jerome Powell reinforced this dynamic, as he highlighted the weakening labor market and suggested that the Fed may have to take additional steps to support growth.
Powell’s comments were interpreted as dovish, pointing toward as much as 100 basis points of easing over the coming year. With monetary policy lags factored in, investors see rate cuts as inevitable. Lower interest rates globally tend to stimulate credit and liquidity, which in turn lift demand for metals with strong industrial uses, particularly platinum in automotive and manufacturing sectors.
Additional confirmation came from weaker-than-expected U.S. data, including September’s PMI and the Richmond Fed regional index. Other Fed officials, such as Michelle Bowman, also acknowledged rising risks of a deeper labor market slowdown. As a result, markets are now pricing in at least two more rate cuts before year-end, creating a favorable backdrop for platinum.
China as the Key Demand Driver
While policy expectations have set the tone, the real engine behind platinum’s rally is China. Traditionally a gold-focused market, China has witnessed a sharp pivot as surging gold prices above $3,700 dampened consumer appetite. Instead, demand for platinum jewelry, bars, and coins has surged.
The scale of this shift is striking. The World Platinum Investment Council (WPIC) reports that China now accounts for 64% of global demand for platinum bars and coins, compared with just 11% in 2019. This surge was reflected in record participation at this year’s Shanghai Platinum Week, where the growing supply deficit was also a key focus.
As China cements itself as the central player in platinum consumption, investors are recognizing that the metal is no longer just a niche industrial asset but a mainstream investment alternative to gold.
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