FX.co ★ Platinum restores to its former glory

Recently, platinum has pleasantly surprised traders of the precious market. Despite the prolonged decline in the value of gold, platinum is growing steadily. It has already broken the level of $1.21 per troy ounce. Interestingly, the last time platinum managed to hit that level was in 2015.

So far, February has been quite a successful month for platinum. Since the beginning of the month, the price of platinum has increased by more than 12%. Its rally was fueled mostly by a rise in demand from the largest automakers, a weakening US dollar, and a gradual economic recovery against the background of the vaccination rollout in many countries.

Notably, platinum has always been considered one of the scarcest metals in the world. It is mainly used in the production of automotive catalytic converters, in oil refineries, as well as in the chemical and electrical industries. Currently, its growth looks quite stable and this trend is unlikely to change in the near future. Platinum is still in high demand that exceeds the supply in the leasing market. Experts at Trading Economics suppose that in the short term, investors may see higher prices of platinum.

The year 2021 has started quite well for platinum. It is almost the only asset in the precious and industrial metals segment, which has been showing positive dynamics since the beginning of the year. Only rhodium and palladium may overshadow its rally although these metals also belong to the platinum group.