Platinum Price Surges Past $2,380 Per Ounce as 2026 Opens With Strong Momentum

Platinum prices climbed more than 6% on January 9, 2026, reaching $2,381.10 per ounce. The move came as the metal regained momentum at the start of the year, reversing a modest correction seen at the end of 2025. The uptrend aligns with persistent structural tailwinds and geopolitical uncertainty. Analysts have cited U.S. tariff risks and a shift in Chinese demand as significant factors.

BofA raised its average 2026 platinum price forecast from $1,825 to $2,450 an ounce. This adjustment followed a recent rally that has already exceeded prior expectations. The bank attributed the surge to ongoing market deficits, U.S. tariff risks, and strengthening demand from China.

Saxo Bank's Ole Hansen noted that platinum, along with gold and silver, has drawn strong investor support as a hedge against uncertainty. The firm highlighted the role of geopolitical tensions, including U.S. actions in Venezuela, in reinforcing platinum's safe-haven appeal at the start of 2026.

Why Did This Happen?

Platinum's rally is underpinned by a combination of macroeconomic and geopolitical factors. Supply constraints, particularly in South Africa—which accounts for 78% of global reserves—have contributed to the uptrend. Aging mines and underinvestment have limited production, while demand, especially in the jewelry sector, has returned to growth in China.

The World Platinum Investment Council (WPIC) reported a forecasted deficit in 2025 of 692 koz, signaling the third consecutive annual shortfall. This has led to a depletion of above-ground stocks to only five months of demand cover, further tightening the market.

How Did Markets Respond?

Investors have responded with increased demand for platinum exposure, particularly through ETFs and physical bullion. Seeking Alpha identified two platinum ETFs with strong momentum, expenses, and liquidity metrics. These ETFs provide direct exposure to platinum prices with lower costs compared to buying physical bullion.

In the broader market, gold rose to $4,480.75 per ounce, and silver surged nearly 5% to $80.31. Platinum's 6% increase outperformed both, reinforcing its role as a strategic hedge against macro uncertainty.

What Are Analysts Watching Next?

Analysts are closely monitoring U.S. policy moves and their impact on global platinum flows. The U.S. has become a key player in the platinum and palladium markets, with potential tariffs on Russian supplies driving domestic prices higher. BofA noted that dumping margins for Russian palladium were estimated at 828%, and any new duties could exacerbate market imbalances.

Geopolitical developments, including military exercises involving Chinese, Iranian, and Russian forces off the coast of South Africa, have also drawn attention. These exercises, while not directly linked to the platinum market, underscore broader tensions that may affect trade and supply routes.

Investors are also watching for any shifts in Chinese demand. A rebound in the jewelry sector in 2025 has drawn more platinum into the country, and the record gold prices have heightened the potential for substitution into platinum.

As 2026 progresses, the interplay of these factors—structural supply deficits, U.S. policy, and global geopolitical risks—will likely shape platinum's trajectory. Analysts from BofA and Saxo Bank remain bullish on the metal's potential for further gains, particularly if demand continues to outpace constrained production.