The price of the metal %Platinum has risen 10% in the past week to hit its highest level in two years.
The 10% weekly gain is the biggest advance in platinum in more than four years.
The precious metal, which is also used for some industrial purposes, is rallying after the World Platinum Investment Council estimated a shortage of almost one million ounces this year.
Consequently, spot platinum prices have reached $1,097.54 U.S. an ounce, the highest level since May 2023.
Platinum faces a challenging near-term outlook as supplies, notably of above-ground stock, declines.
Metals such as platinum, gold and silver are also getting a lift from turmoil in the U.S. Treasury market as investors seek safe haven assets amid rising market uncertainty.
In the U.S., the amount of outstanding Treasuries has skyrocketed from $4.5 trillion U.S. in 2007 to almost $30 trillion U.S. today.
At the same time, the ratio of American public debt to the size of the U.S. economy has risen from about 35% in 2007 to 100% today, according to the Congressional Budget Office.
Yields on 10-year U.S. Treasuries have pushed higher this week, topping the worrying level of 4.50%. Bond yields rise when investors sell the asset.
The situation in the Treasury market has sent investors running to the relative safety of metals such as platinum, say market analysts.
Exacerbating the current situation is the fact that the U.S. dollar continues to slide lower, recently hitting a two-year low against a basket of international currencies.
