Sino-US trade negotiations are touching nerves, platinum leads the way, hitting a four-year high.

Impacted by the high attention to the progress of the China-US trade negotiations in the market, the precious metals market showed a mixed trend on Monday: supported by the weakening US dollar, the price of gold rose slightly, but platinum's performance was particularly eye-catching, with a one-day increase of 7.8%, closing at $1225.70 per ounce, reaching a new high since May 2021. This is the second consecutive week of significant gains for platinum, with a cumulative increase of 10% last week. Although geopolitical uncertainties remain, some analysts pointed out that the market's expectations for an interim agreement between the two major economies, China and the US, in negotiations may represent a short-term bearish factor for the gold market. If there are signs of easing trade tensions, the risk of safe-haven funds withdrawing from the gold market is worth being vigilant about. Currently, the platinum market is facing its second consecutive year of supply deficit. The latest data from the World Platinum Investment Council (WPIC) shows that the global platinum supply deficit is expected to reach nearly 1 million ounces this year. It is worth noting that concerns over import tariffs brought about by the Trump administration have led to a sharp increase in US platinum imports in the first four months of this year, directly driving up platinum borrowing costs. Analysis from Bank of America pointed out that after years of shrinking demand, the Chinese platinum jewelry market is showing signs of recovery. In April, China's platinum imports reached 11.5 tons, setting a new monthly record in nearly a year. The institution believes that against the backdrop of rising gold prices, jewelers are accelerating product diversification, a trend that may reshape the global platinum demand landscape. As of the close on Monday, COMEX gold futures for June delivery rose slightly by 0.3% to $3332.10 per ounce, while silver futures increased by 1.8% to $36.68 per ounce. However, platinum has significantly outperformed gold (26%) and silver (26%) with a 32% increase since the beginning of the year, becoming the brightest spot in the precious metals sector. Driven by progress in trade negotiations and supply-demand fundamentals, volatility in the precious metals market may intensify. Investors need to continuously monitor the details of the China-US negotiations, changes in physical demand in China, and the pull of industrial precious metals demand from global manufacturing industry recovery.