The precious metal rallied through the week as the industry gathered in London for an annual event to discuss the market outlook, and as the World Platinum Investment Council estimated a shortage of almost 1 million ounces this year. Spot platinum hit a high of $1,097.54 an ounce on Friday, the highest since May 2023.

The potential for platinum to serve as a substitute in jewelry for more-expensive gold has lifted sentiment, as has the challenging outlook for supply and dwindling above-ground stocks.

Gold itself headed for a weekly gain as investor concern about the US fiscal deficit boosted the metal’s appeal.

Bullion rose above $3,330 an ounce, on course for a weekly addition of about 4%. After the decision by Moody’s Ratings to strip the US of its top credit rating, investors are now concerned that President Donald Trump’s signature tax bill — which passed the House and now goes to the Senate — will boost the already swelling deficit.

Bullion has surged by more than a quarter this year, and is about $200 below the all-time-high reached last month. Its ascent has been underpinned by the fallout from the US-led trade war, which stoked haven demand, as well as more recently by the nation’s fiscal concerns. Central banks have also been consistent gold buyers as they seek to diversify their reserves.

“Gold is likely to remain range-bound in the near term,” said Justin Lin, an analyst at Global X ETFs. “However, ongoing geopolitical tensions and increasing concerns about the US fiscal outlook continue to provide underlying support.”

In the US, the amount of outstanding Treasuries has skyrocketed from $4.5 trillion in 2007 to almost $30 trillion today, while the ratio of total US public debt to the size of the economy has risen from about 35% in 2007 to 100% now, according to the Congressional Budget Office.

Yields on 10-year US Treasuries have pushed higher this week, topping 4.5%. In earlier years, such a move would have been a major headwind for gold as it doesn’t pay interest, with bullion prices and yields typically moving inversely. That correlation has now weakened, as investors forgo higher interest payments for safe havens.