The rally in gold and silver prices on January 23 also extended to platinum, another precious metal, as demand for non-US assets rose amid heightened global uncertainty and escalating geopolitical risks.
Platinum prices surged to a record high of $2,684.43 in trade today. Meanwhile, silver and gold prices eyed psychologically important $100 and $5000 marks, respectively. Spot silver rate today hit the $99.34 in the international market, and gold prices rose to a new peak $4,966.59.
This is the third straight monthly gain for platinum prices, which have surged almost 30% in January after a 20% rise last month and a 7% gain in November.
What’s driving platinum to record high?
Analysts attributed the rise in platinum to tight supply, strong industrial demand, and heightened geopolitical stress.
Rising policy uncertainty, including challenges to the Federal Reserve’s independence, and renewed tariff concerns tied to tensions between the US and Europe have hurt demand for US assets, prompting buying in precious metals.
The dollar index hovered near a more than two-week low on Friday, having fallen 1% in the course of the week, according to a reuters report. The moves pointed to a gradual unwinding of dollar exposure in favor of regional equities. Additionally, weakness in the US dollar also makes metals cheaper for buyers in other currencies.
Additionally, supply squeeze is lending strength to plantinum rally. In late 2025, production in South Africa—the source of 70% of global output—contracted 2.7% due to rising costs and logistical hurdles. This scarcity coincided with robust automotive demand from internal combustion engine (ICE) production and expanding industrial use in green hydrogen and fiber optics. However, the market landscape is set for a pivotal shift in 2026, opined Pinky Yadav, Commodity Fundamental Analyst, Choice Broking.
Harshal Dasani, Business Head at INVAsset PMS, said that platinum is quietly emerging as the third leg of the precious metals rally, and unlike gold or silver, its move is being driven far more by hard supply stress than monetary narratives.
What makes platinum’s rally distinct is positioning, he said, adding that unlike gold, it is under-owned, and unlike silver, it is not crowded by retail flows. “Inventories remain thin, visible stocks are declining, and the market lacks a meaningful buffer against demand shocks. In that sense, platinum’s move looks less speculative and more like a belated repricing of scarcity—one that investors are only beginning to factor in,” he opined.
Commenting on the outlook for platinum, Yadav said that the overall trend for platinum is decidedly bullish, characterized by a transition from a “neglected industrial metal” to a “critical strategic asset” favored by both industrial users and safe-haven investors.
“While the market may consolidate near record levels as it moves toward a slight surplus in 2026, the long-term price floor has fundamentally shifted higher due to multi-year inventory depletion and the metal’s central role in the global energy transition,” she added.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
