Platinum Price Surges as Bank of America Raises 2026 Forecast

Platinum prices surged to $2,446 per ounce as Bank of America raised its 2026 price forecast to $2,450 per ounce from $1,825 per ounce. This 34% increase in the outlook reflects strong fundamentals, with the investment bank citing persistent market deficits as a key driver for platinum's outperformance over palladium. The revision highlights growing investor interest in precious metals amid structural tailwinds in the mining industry.

BofA also lifted its 2026 palladium price target to $1,725 per ounce from $1,525 per ounce. The bank noted that spot prices for both metals have already exceeded its prior forecasts, indicating a strong rally in the sector. Analysts see platinum as a key beneficiary due to its role in the automotive and industrial sectors, particularly in catalytic converters and hydrogen technologies.

Investor positioning in the mining sector remains uncrowded, allowing for further inflows, while a strong earnings upgrade cycle is beginning, particularly for copper and precious metals producers. BofA's updated forecasts align with a broader structural shift in the industry, including governments recognizing the strategic importance of metals in the transition to cleaner energy.

Why the Move Happened

The Bank of America raised its platinum price target due to persistent market deficits and strong structural tailwinds. Governments across the globe are increasingly recognizing the strategic importance of metals in the clean energy transition, which is underpinning demand. Additionally, the mining sector is attracting new investors who see undervalued opportunities in established producers.

Analysts suggest that platinum's performance is also being driven by its use in hydrogen technologies, which are gaining traction as an alternative to traditional fossil fuels. This has increased demand in the industrial and automotive sectors, further supporting the metal's price.

How Markets Responded

Platinum prices have already surpassed BofA's previous 2026 forecast, reaching $2,446 per ounce in recent trading sessions. The surge reflects investor optimism in the sector, with many analysts viewing the move as a sign of strong underlying fundamentals. The Aberdeen Physical Platinum Shares ETF (PPLT) has delivered an impressive 133.98% return over the past year.

The market response has also been supported by broader trends in the mining industry, including growing interest in copper and lithium projects. BofA highlighted that Rio Tinto and other major miners are benefitting from long-term investments that support stronger growth profiles.

What Analysts Are Watching

Analysts are closely monitoring the structural shifts in the mining industry, particularly the growing role of governments in shaping policy around critical minerals. The increased recognition of metals as strategic resources is expected to drive further demand and price appreciation.

Investor positioning remains a key factor, with BofA noting that the sector is not yet crowded with capital. This leaves room for further inflows, which could amplify the current price rally. Additionally, the earnings upgrade cycle for copper and precious metals producers is expected to continue in 2026, further supporting valuations.

Another key area of focus is the potential for corporate activity among major miners. Glencore and BHP Group are among the companies being watched for any signs of consolidation or strategic partnerships that could drive value for investors.