Discussion: UBS Upgrades Platinum to $1,100 by Mid Year
Premium: UBS on PL, Pa
Discussion:
UBS Upgrades Platinum to $1,100 by Mid Year
• Platinum was undersupplied by nearly 1mn ounces in 2024, but large above-ground inventories likely prevented the metal price from rising.
• We expect platinum to be undersupplied by 500,000 ounces in 2025, keeping the metal in a deficit for a third consecutive year. In USD/oz
• We target a price of USD 1,100/oz by mid-2025, but we continue to expect platinum to lag gold until lower rates support stronger industrial activity. We like to sell the metal's downside price risks.
Full Report at bottom…
CPI Outlook
February core CPI is expected to increase by 0.29% at GS, slightly below the consensus of 0.3%.
Core CPI inflation is forecasted at 3.2%
February headline CPI is forecasted to rise by 0.27%, with food and energy prices each increasing by 0.2%.
The CPI is considered secondary this month to broader US growth concerns
“President Donald Trump no longer plans to raise tariffs on Canadian steel and aluminum imports to 50% on Wednesday, top White House trade advisor Peter Navarro told CNBC on Tuesday afternoon. CNBC
“Three of the biggest US airlines have warned of a slowdown in domestic demand, prompting some of them to slash their revenue and earnings expectations for the first quarter in the latest sign of waning consumer confidence. FT
“Kohl’s cut its dividend and projected a larger-than-expected sales decline for fiscal 2025, weighing on shares... WSJ
“Facebook owner Meta is testing its first in-house chip for training artificial intelligence systems, a key milestone as it moves to design more of its own custom silicon and reduce reliance on external suppliers like Nvidia... Reuters
US President Trump's 25% tariffs on steel and aluminium took effect with no exemptions.
Ontario Premier Ford said they are suspending the 25% surcharge on exports of electricity and that US Commerce Secretary Lutnick agreed to meet with Ford on Thursday and will discuss a renewed USMCA ahead of the April 2nd deadline.
US President Trump said he respects Ontario's decision to suspend the 25% energy surcharge, while he said he was looking at backing down on the 50% duties on Canada and may back off doubling steel and aluminium Canada tariffs.
Canada's Energy Minister said at CERAWeek that Canada may implement non-tariff measures such as restricting oil exports if the trade war with the US escalates
UK Business and Trade Secretary Reynolds said it is disappointing the US has imposed global tariffs on steel and aluminium, while he stated that negotiations are ongoing for a wider economic agreement with the US to eliminate additional tariffs.
Brazil asked the US to postpone the deadline for the 25% tariff on Brazilian steel and aluminium imports, which is scheduled to take effect this Wednesday, according to O Globo sources.
Australian PM Albanese reiterated they will not impose reciprocal tariffs on the US and will continue to engage with the US on tariffs.
