Recent price action in the precious metals market is raising questions about whether investors are shifting their focus from gold to white metals such as platinum and silver.
According to UBS Global Research, although gold remains supported by strong macro uncertainty and portfolio diversification demand, platinum has begun to outperform other metals, leading some market watchers to speculate about possible investor rotation.
Gold has been consolidating since reaching an all-time high of $3,500 per ounce in late April.
The metal has held firm in the face of fluctuating U.S. tariff policy and monetary expectations, but recent market behavior suggests that some investors may be exploring alternatives within the precious metals complex.
While gold futures open interest has declined, futures positions in platinum and silver have seen increases.
A similar trend is evident in call options, where open interest is rising in platinum but falling in both gold and silver.
The rally in platinum is notable. UBS reports that the metal recently broke through the near $1,220 level and is approaching the $1,300 psychological barrier, with further technical resistance around $1,340.
On one recent trading day, platinum rose about 4%, far outpacing gold and silver, which gained less than 1%. Palladium also climbed nearly 2%.
Analysts at UBS point out that the platinum market is showing signs of stress, with rising borrowing costs pushing some market participants to buy the metal outright, intensifying the upward momentum.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. UBS does not explicitly confirm a widespread investor rotation out of gold, but the data suggest it cannot be ruled out.
The gold-to-platinum and gold-to-silver ratios have shifted in favor of the white metals, making them comparatively more attractive.
Prior to platinum’s rally in late May, one ounce of gold equaled more than three ounces of platinum and nearly 100 ounces of silver. Such stretched valuations may have prompted some rebalancing activity.
Even so, UBS does not interpret these developments as a negative signal for gold. The bank maintains a bullish view, citing resilient physical demand and ongoing purchases by the official sector and exchange-traded funds.
Any minor reallocations from gold are expected to have limited market impact, particularly given that broader positioning in gold remains light.
The brokerage suggests that investors continue to view gold as a hedge against macroeconomic and fiscal uncertainty.
In thinner white metal markets like platinum and silver, however, the price effects of even modest inflows can be more dramatic.
UBS notes that differences in market depth mean that the same volume of investor interest has a larger price impact in platinum and silver than in the more liquid gold market.
