Platinum Set for Biggest Monthly Gain in 39 Years on EU Auto Policy Shift

Platinum prices are on track for their strongest monthly rally in nearly four decades, driven by the European Union’s reversal on its 2035 combustion-engine ban, tight supply conditions, and increasing investment demand for precious metals.

Spot platinum has soared by 146% so far this year, with prices hitting a record $2,478.50 per ounce on Monday. The rally reflects both short-term market catalysts and long-term fundamental strength, according to analysts. Platinum, alongside palladium, is widely used in autocatalysts that reduce vehicle exhaust emissions, making the metals crucial in traditional automotive production.

The EU’s policy reversal has been a major boost for platinum demand, signaling continued reliance on internal combustion engine vehicles for the coming decade. Analysts say this shift, coupled with constrained mine output and growing interest from investors seeking alternatives to gold and silver, has created a perfect storm for soaring prices.

Global investors have also been attracted to platinum due to its safe-haven appeal amid U.S. tariff uncertainty and volatile financial markets. While the long-term trend toward electric vehicles continues, the immediate impact of policy changes and supply-demand dynamics has driven the metal to unprecedented levels.

Market watchers note that platinum’s extraordinary rally underscores how geopolitical decisions and regulatory shifts can have dramatic effects on commodity markets, especially those tied to industrial demand. The metal’s performance this month highlights the interplay between automotive policy, investment flows, and supply limitations in shaping precious metal prices.