Platinum Hits Over 12-Year High

Platinum futures hovered near $2,100 an ounce, trading in a narrow range and largely unchanged for the week, as a firm US dollar weighed on precious metals. The safe-have currency strengthened as concerns over a prolonged Middle East war and surging oil prices stoked fears of a global economic downturn. This also prompted markets to push back expectations of Fed rate cuts amid rising inflation risks. In the latest development, Iran stepped up attacks on oil and transport facilities across the Middle East, and the new Supreme Leader vowed to keep the Strait of Hormuz effectively closed. Meanwhile, the platinum market remained supported by tight supply from major producers and steady industrial demand, particularly for automotive catalytic converters, while EV sales in February dropped again. In Japan, Rakuten Securities launched a tax-efficient platinum fund, expanding retail access to the metal, adding further support on prices.

Platinum futures rose above $2,200 an ounce, rebounding from a two-week low as risks from the volatile Middle East conflict underpinned demand for safe-haven metals. Fighting between the US and Israel against Iran entered its 12th day, with the Pentagon reporting some of the heaviest strikes so far and pledging to sustain operations until the Islamic Republic is defeated, contrasting with Trump’s suggestion that the war could end soon. Meanwhile, the IEA proposed what could be the largest coordinated release of oil reserves in its history to calm markets. Still, supply concerns persisted as major regional producers curtailed output while the Strait of Hormuz remained effectively closed, keeping investors cautious. The platinum market remains structurally tight, with limited mine supply growth and expectations of another global deficit this year, while steady demand from the automotive sector for catalytic converters continues to support longer-term consumption.

Platinum futures traded below $2,100 an ounce, hovering more than two-week lows, pressured by a broader retreat across precious metals. The decline came as surging energy prices fueled inflation concerns and strengthened the US dollar, reducing the appeal of non-yielding safe-haven metals. Oil surged above $100 per barrel for the first time since 2022 as the US-Israeli war with Iran entered its second week, with attacks on energy infrastructure and shipping disruptions through the Strait of Hormuz tightening global supply. The chokepoint typically handles about a fifth of the world’s oil trade, and recent tanker disruptions have prompted several Middle Eastern producers to curb output. Meanwhile, the platinum market remains structurally tight, with limited mine supply growth and expectations of another global deficit this year, while steady demand from the automotive sector for catalytic converters continues to support longer-term consumption.