Platinum prices are soaring in December, set for their strongest monthly rally in nearly 40 years. The surge is fueled by the EU’s reversal on its 2035 combustion-engine ban, tight supply, and rising demand for precious metals. Platinum and palladium, used in autocatalysts, have also seen significant gains due to U.S. tariff uncertainty and a rally in gold and silver.

The EU’s plan to extend the use of PGMs in catalytic converters has provided a significant boost to the metals. Tighter emission levels will require higher PGM loadings, further driving demand. Platinum, used in various industries including jewelry, has seen a 33% increase in December, the largest jump since 1986.

Platinum hit a record high of $2,478.50 per ounce in December, marking its biggest yearly growth on record at 146%. Palladium and rhodium are also up significantly at 80% and 95% respectively so far in 2025. Defensive stock-building and tighter supply have further supported platinum and palladium prices.

The market anticipates more clarity on U.S. tariffs in January, which could impact the PGMs market. The introduction of PGMs futures trading in China has attracted heavy speculative flows, boosting prices. These contracts provide a domestic price-hedging mechanism for the world’s second-largest economy, a major consumer of PGMs heavily reliant on imports.

Read more at Yahoo Finance: Platinum set for biggest monthly gain in 39 years on EU auto policy boost