UBS Slashes Platinum Price Forecast, Cites Sluggish Investment Demand

Swiss bank UBS has published a note in which it reduced its price forecast for platinum for the rest of this year and early 2027. The bank premised its prediction on a number of demand-side factors weighing on the precious metal’s price.

Last year, platinum surged 125% to reach historic prices alongside other precious metals like gold and silver. In fact, platinum’s rally was more impressive than that of its counterparts in the precious metals category. However, UBS says the precious metal has shed some of its allure and there are possibilities that the metal could shift from its expected supply deficit into a surplus in 2026.

The Swiss bank has slashed $300 from its original forecast for platinum’s price by the end of this year and now says the metal is likely to go for about $1,700 per ounce from September to December this year and rally to about $1,800 in the second quarter of next year.

At the start of this week, an ounce of platinum was going for $1,618 on the spot market. The downward pressure on platinum and other precious metals stems from a variety of macroeconomic factors like inflation concerns, a stronger Greenback, and an increasingly hawkish Fed.

Platinum is also an industrial metal, and pressures have also emerged from this side of its demand. The auto sector, where platinum is used in the production of autocatalysts, has experienced slowed growth.

Demand for platinum in the jewelry segment has also dropped, partly due to the high prices at which the metal has been trading. However, the uncertainty about the economy has also weighed on spending on platinum jewelry.

Last year, the UBS note points out, platinum-linked ETFs accumulated holdings to record levels. However, those holdings have since dwindled by about half a million ounces in 2026 and now stand at just below 3 million ounces. Such a drawdown illustrates how investor interest has cooled, and that is affecting the precious metal’s prices.

While the bank’s overall assessment of platinum is a downgrade, UBS added that its general outlook for the metal remains moderately constructive given that the bank expects the price of gold to register gains that will also lift other precious metals over the months ahead.

For platinum producers like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM), the UBS note warrants some careful assessment as these miners plan their capital outlays and production increases over the coming months.

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