Economists at ANZ Bank expect Platinum to enjoy gains this year and hit the $1,250 mark by the end of 2023.
Long-term negative view on Palladium
“Improving auto sector growth, higher loadings and substitution away from Palladium are likely to benefit Platinum.”
“Auto catalyst demand is likely to grow by 5% YoY. Constrained supply and robust demand could shift the market into deficit by 145 koz. A tighter market should encourage stronger investor activity.”
“We expect ETF holdings to rise by 300 koz this year after two consecutive years of outflows. This should push Platinum prices to $1,250 towards the end of this year. However, we hold a long-term negative view on Palladium due to weakening auto catalyst demand.”
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ANZ have recently predicted that Platinum is set to reach $1,250 by the end of this year. This estimated increase is mainly due to strong demand, mostly from the automotive and industrial sectors.
Industrial sector demand for Platinum has increased significantly due to its high stability against erosion, which is ideal for the production of medical equipment and electronic components. Furthermore, its ability to act as a catalyst for certain chemical reactions makes it highly sought after for the production of batteries, solar panels, fuel cells, and other technical applications.
The automotive sector has been a strong user of Platinum for years due to its ability to reduce harmful exhaust emissions from vehicles. It is also used in the production of several other automotive parts, such as spark plugs, catalytic converters, and diesel particulate filters.
These two sectors are predicted to remain as the main consumers of Platinum, resulting in increased prices over the rest of the year. Analysts also believe that economic growth, lower-than-expected supplies of the metal, and increased investments in the metal’s futures will further contribute to this price increase.
In conclusion, based on the current trends and predictions, Platinum is likely to reach $1,250 before the end of the year. This price increase is likely to benefit both the industrial and automotive sectors, with the associated price increases making these sectors more viable and desirable investments.