Platinum Price Hits 11-Year High, But ETF Outflows Signal Caution
By tredu.com • 6/20/2025
Tredu
Platinum Price Hits 11-Year High, But ETF Outflows Raise Concerns
The Platinum (XPT/USD) market has continued its impressive climb this week, touching $1,350 per troy ounce, a level not seen since 2014. This marks a strong bullish run for the precious metal, largely driven by increased industrial demand, tightening mine supply, and a general rise in commodity sentiment.
ETF Outflows Cast a Shadow on Bullish Momentum
While price momentum is strong, a key bearish signal is emerging: outflows from Platinum-backed ETFs. Historically, ETF inflows align with sustainable rallies. The recent divergence suggests some large investors may be locking in profits or anticipating near-term corrections.
What’s Fueling the Rally?
Several factors have contributed to Platinum’s price spike:
- Anticipated supply constraints in South Africa
- Growing demand from automotive and hydrogen fuel sectors
- Stronger-than-expected industrial activity in China
Should Traders Be Cautious?
Despite the upward price action, traders should note that speculative buying without strong ETF backing can lead to volatile reversals. Technical resistance near the $1,360–$1,370 area could test the market’s resolve.
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