So far, 2024 has been uneventful for the platinum price, which has recorded a 2.39% drop since the year’s turn despite an overall rise in the commodities sector and a record deficit in the precious metal’s global market in 2023, artificial intelligence (AI) has offered potential platinum price target in the near future.
Indeed, taking this context into consideration, Finbold has tasked the most recent iteration of ChatGPT, the brainchild of OpenAI, as well as its competitor, Google Gemini, the flagship AI product by Alphabet (NASDAQ: GOOGL), for insights regarding the possible price range on May 31, 2024.
ChatGPT predicts platinum price
Based on current conditions, ChatGPT has outlined some predictions for the potential platinum price per ounce range by May 31, which vary between $950 per troy ounce at the lower end and a more optimistic $1,000 “slightly above” as the higher target, from the viewpoint on May 6.
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Furthermore, the AI bot specified that the lower bound “might not deviate significantly from the current price,” whereas the optimistic upper bound could follow an increasing “demand for industrial uses and jewelry (…), particularly if economic conditions remain favorable or improve.”
Gemini predicts platinum price
At the same time, Google Gemini pointed out that “the price might fluctuate between $900 and $1050 by May 31st, depending on how the influencing factors play out,” including industrial demand, supply chain disruptions, economic trends, and expert opinions.
Specifically, the AI bot has based its lower platinum price target on a “slight decrease in demand or potential supply disruptions pushing the price down from its current level,” while the higher-end prognosis:
“Considers a moderate increase in demand, particularly from the jewelry sector, or positive developments in the global economy leading to an overall rise in precious metal prices.”
Platinum price analysis
So, what is the platinum price today? Notably, the platinum price per gram currently stands at $34.05, whereas the platinum price per ounce at press time amounted to $958.57, recording a 0.59% gain on the day, advancing 1.30% across the week, while dropping 0.40% in the last month.
In terms of platinum price vs. gold, the former has been making significantly less impressive market movements than the latter, considering gold’s massive advance of 15.54% since the year’s turn, compared to platinum’s decline of 0.04% in the same period.
As it happens, the profitability of platinum group metals (PGM) mining operations has declined because of their close connection to palladium and rhodium, which have witnessed declines in pricing, leading to restructuring announcements from all major producers.
On top of that, the supply deficit has failed to boost prices because carmakers have accumulated excess PGM inventories during the 2020-2022 period due to Covid-induced production decline, according to the quarterly report by the World Platinum Investment Concil (WPIC).
Finally, many analysts expect that platinum will play an essential role in the development of hydrogen technology, considering its usability in producing carbon-free hydrogen from renewable energy. According to Stash Graham, the managing director of Graham Capital Wealth Management:
“If hydrogen-based power meets expectations in the coming decade, then one could expect a material demand tailwind in platinum.”
All things considered, platinum could move in the direction set by AI, but it is important to keep in mind that things in any market can change on a whim, and AI bots cannot reliably make price predictions, so doing one’s own research is essential when investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
