HSBC cuts platinum, palladium average 2026 price forecasts

By Reuters News

Oct 22 (Reuters) - HSBC cut its average 2026 platinum and palladium price forecasts in a research note on Thursday, citing shifting market fundamentals and investor liquidation, while adding that both metals have room to recover.

• HSBC cut 2026 average platinum price forecast to $1,925/ounce, and left 2027 forecast at $2,195. The note did not specify the prior 2026 forecast for the metal.

• The bank lowered 2026 average palladium price forecast to $1,436/ounce from $1,546 previously, and maintained 2027 forecast at $1,595

• Platinum has been pressured by financial market impact of the Middle East conflict, said HSBC, adding weak auto demand, sluggish jewelry demand and heavy liquidation of ETFs and long positions had knocked platinum off highs

• Similar factors evident in palladium market, it said

• HSBC forecast platinum market deficits of 344,000 ounces in 2026 and 825,000 ounces in 2027, adding the market would remain in deficit despite a narrowing shortfall this year

• Platinum mine supply remains highly constrained, with obstacles faced by producers in South Africa, Russia and Zimbabwe, while higher gold prices and renewed investor demand for hard assets could support platinum, HSBC added

• Despite lowering its 2026 price view, HSBC said limited mine supply, with lower Russian and North American output expectations this year, is key to higher palladium prices

• Palladium may be reaching levels that leave it fundamentally undervalued despite weak auto demand, HSBC said.

• Spot platinum was down 3.7% at $1,568.01/ounce, while spot palladium was 2.8% lower at $1,056.

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