Platinum bullion prices are experiencing a surge, contrasting with the bearish trend observed in palladium. The first quarter of the year saw a decline in both platinum and palladium prices, with platinum futures closing at $907.70 and palladium futures at $1,021.50 per ounce. However, in late May 2024, these metals surpassed the $1,000 mark, with platinum showing a stronger performance compared to palladium.

The dynamics of platinum and palladium prices are heavily influenced by their industrial applications rather than financial aspects. Notably, the futures markets for platinum and palladium exhibit lower liquidity levels compared to gold and silver, leading to potential price volatility during market shifts.

Platinum prices have shown resilience, with a notable recovery from $907.70 to $1,105 by May 20, representing a 20% increase. Despite this positive momentum, platinum has been hovering around the $1,000 level for several years, indicating a historical pivot point. On the other hand, palladium prices closed at $1,021.50 per ounce in Q1, with a slight decline to $1,005.50 by May 22, maintaining a bearish trend since March 2022.

The liquidity of futures markets plays a crucial role in determining price stability. While gold and silver markets demonstrate high liquidity, platinum and palladium markets suffer from lower levels of liquidity. As of May 21, 2024, the open interest and daily volume for platinum and palladium futures reflect their relatively limited liquidity, making them more susceptible to price fluctuations.

Investors seeking exposure to platinum and palladium can consider options such as physical bars and coins or ETFs like PPLT for platinum and PALL for palladium. These ETFs track the futures prices of the metals, offering an alternative investment avenue. However, it is essential to note that ETF trading hours may not align with round-the-clock metal trading, potentially causing discrepancies in price tracking.

In conclusion, platinum bullion prices are on an upward trajectory, while palladium prices remain subdued. The contrasting performance of these metals underscores the importance of industrial demand in shaping their price trends. As gold and silver prices see an uptrend, platinum and palladium provide viable alternatives for investors seeking exposure to the precious metals market.