The price of platinum is currently experiencing a bearish trend and could test the $1,000-per-ounce benchmark this year, according to the latest Platinum and Palladium Survey from the respected Thomson Reuters GFMS.
At press time the metal was trading at $1,168 per ounce. It has stayed above the $1,000 level since February 2009.
“We would not be surprised if platinum tested $1,000 this year,” said the survey, noting that “from a technical perspective [it] is currently in a short-term bearish trend that is projected to end at $1,000.”
It notes supply will likely ramp up, projecting a 22 percent jump in South Africa’s mine production and 10 percent rise in auto catalyst scrap.
Overall, the report expects platinum to average $1,170 in 2015—16 percent lower than the average for 2014, which was its lowest annual average in seven years.
The survey estimated that platinum-jewelry fabrication slipped 3 percent in 2014, due to the weakness in once-booming markets such as China. However, platinum-jewelry demand logged a 3 percent gain in North America last year, due to the strengthening economy and better-priced items.
This year, the report projects overall jewelry demand to rise 4 percent.