Platinum and Palladium Outperformance: A Supply-Driven Rally in 2025

Platinum and palladium have staged a remarkable comeback in 2025, with platinum surging 40-55% year-to-date and briefly touching $1,432.60 per ounce in late June. Palladium followed with gains of 30-41%, forcing markets to reassess supply dynamics, automotive demand, and liquidity conditions.

Technical indicators show platinum firmly above $1,300, with key support at $1,200 and resistance NEAR $1,400. Lease rates and warehouse stock tightening suggest physical market strains, converting previous resistance levels into new support zones.

The rally stems primarily from supply constraints. Johnson Matthey projects a third consecutive year of declining primary supply, with platinum facing a material deficit in 2025. Palladium appears to be moving toward balance after periods of dislocation.

Investment and jewelry demand have accelerated as high Gold prices drive substitution into platinum. Automotive sector shifts are also increasing platinum offtake where palladium supplies remain constrained.