HSBC raises platinum and palladium price forecasts for 2025 and 2026

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HSBC has raised its average price forecasts for platinum and palladium for 2025 and 2026, citing strong underlying fundamentals, according to a note dated July 22.

It raised its average price forecasts for platinum to $1,215 an ounce (from $1,030) for 2025, and to $1,445 an ounce (from $1,310) for 2026.

Palladium average price forecasts were raised to $1,100 an ounce (from $977) and to $1,135 an ounce (from $985) for 2026.

Spot platinum PL1! was trading around $1,425/oz and was up nearly 58% for the year. Spot palladium XPDUSD1! was currently around $1,283/oz and gained 41% this year. HSBC noted that correction may be on the horizon due to the pace of the rally despite its positive view.

“Jewellery demand is rising rapidly and is highly competitive with gold. Platinum is also attracting investor demand as a cheaper alternative to gold,” the note said.

On palladium, it said; “Other forms of industrial demand are steady. Investor sentiment is positive but may moderate. ETFs (exchange-traded funds) may accumulate metal but at a reduced pace.”

Looking ahead, the bank forecasts a deepening deficit in the platinum market, projecting a shortfall of well over 900,000 ounces by 2026. Palladium’s story is slightly different — while it has been in a state of wide deficits, HSBC expects the gap to narrow by 2026.