Platinum Consolidated on a Subdued Note, Spot Platinum Transaction Discounts Fell, and Mainstream Quotations Struggled to Close Deals [SMM Daily Review]

[SMM Express] OCBC has expanded its digital precious metals platform to allow retail investors to trade platinum and palladium bullion through its mobile app, starting from just 0.01 oz. Based on recent prices, the minimum investment is equivalent to around S$23 for platinum and S$18 for palladium, significantly lowering the entry barrier for retail participation. The move comes as investment interest in PGMs grows, with OCBC Group Research maintaining a bullish outlook and forecasting platinum above US$2,000/oz and palladium above US$1,500/oz by H1 2027. Unlike gold, PGM prices are strongly influenced by industrial demand from automotive, industrial and clean-energy applications as well as highly concentrated supply chains. The expansion could broaden the investor base for platinum and palladium, potentially supporting investment demand and market liquidity. With both metals already facing evolving supply-demand dynamics, increased retail access through digital platforms could become an additional source of demand alongside industrial consumption and institutional investment.

[SMM Express] Platinum futures climbed to around USD 1,780/oz, approaching an eight-week high as the precious metals complex strengthened. The move was supported by improving investment demand, with increased bullion holdings among Chinese institutional investors providing additional momentum as market volatility heightened. Meanwhile, AI and data-centre expansion could become a new source of PGM demand. Valterra Platinum estimates current AI-related PGM demand at around 200,000–400,000 oz annually and expects it could increase fivefold by 2030, supported by PGMs’ electrical and thermal properties. The longer-term outlook remains supported by a structural platinum market deficit and constrained mine supply, particularly from South Africa. However, sustained higher prices could encourage greater recycling and eventually place pressure on some areas of demand, leaving supply constraints and emerging technology demand as key factors to watch.