Platinum and Palladium Prices Surge as Bank of America Extends Rally Outlook into 2026

Platinum and palladium prices have entered a stronger phase, with both metals extending their rally further than many analysts anticipated. According to Bank of America, the momentum is strong enough to justify higher average price forecasts through 2026.

Spot platinum and palladium prices have already moved beyond earlier projections, highlighting how tight the PGM market has become. This shift reflects deeper structural issues rather than short-term speculation.

Bank of America now sees platinum prices averaging $2,450 an ounce in 2026, while palladium prices are expected to average $1,725 an ounce. These upward revisions signal growing confidence that supply pressures will remain unresolved.

Platinum and palladium prices are being supported by persistent market deficits, particularly in platinum. The bank continues to expect platinum to outperform palladium as industrial demand remains resilient.

U.S. trade policy is playing an increasingly important role in shaping platinum and palladium prices. Tariff risks have turned the U.S. into a magnet for PGM inventories, tightening availability elsewhere.

Concerns around potential duties on Russian palladium have pushed inventories higher and driven sharp moves in exchange-for-physical activity. This dynamic has added volatility but also reinforced higher domestic pricing.

China is also contributing to the strength in platinum and palladium prices. A recovery in jewellery demand has pulled more metal into the country, tightening global supply.

Record-high gold prices may further support platinum demand through substitution, potentially widening the existing deficit. This trend adds another layer of support to the platinum outlook.

New physically backed platinum and palladium futures in China have added further price stability. Physical sourcing requirements appear to have been a key driver behind recent price surges.