Precious Metals Rally: Records, Drivers & ETF Winners

Why are precious metals hitting new highs?

In late September 2025, several precious metals surged to standout levels. Gold climbed to a new all-time high near $3,812/oz, silver jumped to around $47/oz (its strongest in 14 years), platinum breached $1,600/oz (its highest since 2013), and palladium pushed toward $1,280/oz. These moves reflect the convergence of macro drivers, Fed rate cut expectations, dollar weakness, and safe-haven flows, with acute supply pressures in the platinum group metals (PGMs).

What’s fueling palladium’s rally?

Palladium’s strength is rooted in constrained output and a recovering auto sector. Production issues in key mining regions, along with geopolitical risks, are curbing primary supply. Secondary sources, especially from the recycling of catalytic converters, remain insufficient to fill the gap. With auto demand accounting for roughly 80% of palladium use, upward revisions to vehicle production forecasts (notably from S&P Global) reinforce expectations of a tight market into 2026.

Why is platinum outperforming many peers?

Platinum has capitalized on demand diversity and structural scarcity. South African mine output is projected to fall by about 6% in 2025, while global supply could contract roughly 3%, according to WPIC. Recycling remains historically weak. On the demand side, jewelry purchases in China are expected to rise around 11% this year, while investor appetite has surged.

UBS recently raised its platinum price target to $1,350/oz, citing tightening in trading centres like London and Zurich and falling above-ground stocks. Tariff uncertainty in the U.S. has added to near-term price support.

Momentum was amplified by China’s new climate pledge, which includes cutting emissions 7–10% by 2035 and expanding renewable energy sixfold. Analysts expect this to drive higher platinum use in autocatalysts for hybrid vehicles and hydrogen fuel cells, while also boosting silver demand in solar panels. Following the pledge, platinum briefly spiked above $1,520/oz, its strongest level in more than a decade.

Which ETFs are catching fire this week?

The ETF market shows the sharpest investor interest in years, with platinum and palladium funds leading week-to-date momentum:

• PHPT (WisdomTree Physical Platinum ETC): gained more than 11% WTD, adding to nearly 50% YTD performance.
• IPLT (iShares Physical Platinum ETC): rose over 11% WTD, also delivering close to 50% YTD returns.
• PHPD (WisdomTree Physical Palladium ETC): up more than 11% WTD, extending YTD gains of roughly 24%.
• ZPLA (ZKB Platinum ETF AA CHF): advanced 9.2% WTD, now showing about 49% YTD gains.
• ZPAL (ZKB Palladium ETF AA CHF): added 9.6% WTD, bringing YTD returns to around 22%.

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.