Editor OilPrice.com

Thu, Jun 19, 2025, 11:00 AM3 min read

Via Metal Miner

The Global Precious Metals MMI (Monthly Metals Index) saw a strong rally from mid-May to mid-June. Precious metals prices like gold, silver, platinum and palladium all climbed on a potent mix of safe-haven investment flows and robust industrial demand. Geopolitical tensions, notably the recent flare-up in the Middle East between Israel and Iran, have only fueled more risk aversion. This continues to drive safe-haven demand into gold and silver.

Palladium has improved from its spring lows but continues to lag other precious metals prices due to a fundamentally narrower demand profile. While that marks a modest rebound, palladium remains far below its peaks from a few years ago. The primary issue is softening demand. Over 85–90% of palladium’s use is in catalytic converters for gasoline cars, a segment that remains under pressure as EV sales accelerate.

Source: MetalMiner Insights

Even within combustion vehicles, some automakers are reducing palladium loadings or substituting platinum to cut costs. On the supply side, palladium had faced chronic deficits for much of the past decade. However, that seems to be changing. After 13 years of shortfalls, 2025 is forecast to be roughly balanced in palladium supply and demand.

Unless an unexpected supply disruption occurs (for instance, mining issues or sanctions affecting top producer Russia), palladium is likely to remain range-bound. Some downward pressure could even re-emerge if auto production weakens further. Procurement teams with palladium needs may want to adopt a more hand-to-mouth buying approach or look into substitution strategies, topics frequently covered in MetalMiner’s free knowledge resources.

Platinum has been a standout performer in the precious complex, with prices climbing significantly month-over-month. Unlike gold and silver, platinum’s strength is heavily tied to supply and fabrication demand dynamics. On the supply side, the platinum market is swinging into a significant deficit this year. Leading analysts at Johnson Matthey project that platinum supply will fall short for a third consecutive year in 2025.

This constrained supply, coupled with only modest recycling flows, continues to tighten the market. Metals strategists generally expect platinum to hold and potentially extend its previous gains. “Platinum will retain recent gains and could rise a little further as gold and silver gain,” notes one analyst, emphasizing the metal’s diversified demand base as outlined by Reuters.