Platinum set for biggest monthly gain in 39 years on EU auto policy boost

Group 1 - Platinum prices are experiencing their strongest monthly rally in nearly four decades, driven by the EU's reversal on its 2035 combustion-engine ban, tight supply conditions, and increased investment demand for precious metals [1][2] - The EU's recent plan is seen as a significant boost for platinum group metals (PGMs), extending their use in catalytic converters and requiring higher PGM loadings due to ongoing tighter emission levels [3][4] - Platinum has risen by 33% in December, marking its largest increase since 1986, and is on track for a record yearly growth of 146%, while palladium and rhodium have increased by 80% and 95% respectively [3][4] Group 2 - Both platinum and palladium have benefited from defensive stock-building and tighter supply in regional physical markets, influenced by their inclusion on the U.S. critical minerals list [4] - The introduction of PGMs futures trading in China has attracted significant speculative flows, prompting adjustments in price limits by the Guangzhou Futures Exchange [4][5] - The market anticipates more clarity on U.S. tariffs in January, which could impact the demand for platinum group metals, especially if Chinese spot import buying remains high [5]