HSBC cuts 2026 average price forecasts for platinum and palladium

what happened

HSBC on Thursday reduced its average 2026 price forecasts for platinum and palladium, according to a research note reported by Reuters. The bank now expects platinum to average $1,925 an ounce this year and palladium $1,436, down from $1,546 previously. Its 2027 platinum forecast stays at $2,195 and the palladium forecast for 2027 is kept at $1,595.

HSBC attributes the revision to shifting market fundamentals and investor liquidation. The bank said platinum has been hit by the financial market effects of the Middle East conflict, weak auto demand, sluggish jewelry sales and heavy sell-offs of ETF holdings and long positions. Palladium faces similar pressures. On Thursday spot platinum fell 3.7% to $1,568.01 an ounce, while spot palladium dropped 2.8% to $1,056.

why it matters

HSBC still expects platinum to remain in deficit, at 344,000 ounces in 2026 and 825,000 ounces in 2027. Constrained mine supply, with obstacles for producers in South Africa, Russia and Zimbabwe, is a factor the bank sees as supportive. Higher gold prices and renewed investor interest in hard assets could also help platinum. For palladium, the bank points to lower expected output in Russia and North America as the key driver of future prices.

market impact

Platinum and palladium: lower forecasts weigh on price expectations and add pressure from fund selling in precious metals

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