Platinum

Platinum weekly special report based On 1.00 Lot Calculation:

PLATINUM USE AND MARKET SHARE:

• Platinum has been a key element in autocatalysts for over forty years, with the automotive sector being its largest consumer, accounting for about 40% of annual demand.
• MARKET SHARE (PRODUCERS): BIGGEST PLATINUM PRODUCERS IN THE WORLD: South Africa is the largest producer holding 72.8% of the global market share while Russia is the second with 8-10% of the market. Zimbabwe is third with 5%.
• MARKET SHARE (CONSUMERS): China is the world's largest platinum consumer with 34%, while Europe holds 22% and North America's 16% share of the platinum consumed worldwide.

HIGHER DEMAND IN 2025:

• AUTO SECTOR DEMAND TO HIT EIGHT-YEAR HIGH: The automotive industry, anticipated to begin its recovery this year, is expected to be a key driver of platinum demand in 2025. Consumption from the sector is projected to reach 3,245,000 ounces, the highest level in eight years. Source: The World Platinum Investment Council (WPIC)
• TRUMP REVOKES BIDEN’S 50% EV SALES TARGET BY 2030: Trump rescinded the Biden administration's goals to boost electric vehicle sales, stating that U.S. citizens should have the freedom to choose the type of car they want to buy. This decision is seen as a positive signal for the traditional automotive industry, particularly for vehicles powered by fossil fuels, which utilize platinum in catalytic converters to reduce harmful gas emissions.

PLATINUM SUPPLY DEFICIT IN 2025:

• THIRD CONSECUTIVE YEAR OF DEFICIT IN 2025: The global platinum market is expected to experience its third consecutive year of deficit in 2025, with a projected shortfall of 539,000 ounces, according to the latest quarterly report from the World Platinum Investment Council (WPIC). UBS forecasts a supply deficit of 500,000 ounces, equivalent to 6.4% of total demand, further confirming the persistent supply shortages. This follows deficits of 700,000 ounces in 2024 and 760,000 ounces in 2023, highlighting ongoing challenges in meeting growing demand.

EVENTS

• WEDNESDAY, FEBRUARY 19 AT 19:00 GMT: FOMC meeting minutes. In January's meeting, the Fed decided to keep rates unchanged, reflecting cautious optimism about the economy amidst ongoing uncertainties. The minutes will reveal how FOMC members voted, offering a clearer picture of their stance on future rate cuts and providing insight into the committee's overall sentiment regarding economic conditions. These details will be important for understanding whether the Fed is likely to adopt a more dovish or hawkish approach in the months ahead, particularly in light of inflationary pressures and potential shifts in fiscal policy.
• FRIDAY, FEBRUARY 29 AT 13:30 GMT: PCE (Personal Consumption Expenditures) Index in the US (January). Core PCE in December rose from 0.1% to 0.2%, aligning with expectations. The Personal Consumption Expenditures (PCE) Price Index is the Federal Reserve’s preferred inflation measure, as it reflects changes in consumer behavior. Lower-than-expected PCE values can weaken the U.S. dollar, putting upward pressure on commodity prices, including platinum.

PRICE ACTION:

• Platinum is currently trading at approximately $1010, with its previous peak of $1,348.20 in February 2021 representing a potential upside of about 34% if fully recovered. The price has risen nearly 11% since the beginning of the year. However, it could also decline further.

PLATINUM, February 19, 2025
Current Price: 1,010

Example of calculation based on weekly trend direction for 1 Lot¹

1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 10:15 (GMT) 19/02/2025

There is a possibility to use Stop-Loss and Take-Profit

• You may wish to consider closing your position in profit, even if it is lower than the suggested one.
• Trailing stop technique could protect the profit