Platinum Hits Over 5-Week Highs

Platinum futures steadied above $1,900 an ounce, holding its rebound from a three-month low as precious metals broadly advanced on signs of de-escalation in Middle East tensions. President Trump told aides he is willing to end the war against Iran even if the Strait of Hormuz remains largely closed, while reports suggested Iran’s President may consider ending the conflict under certain conditions. This could lead to lower oil prices and ease concerns over further central bank rate hikes. Still, platinum remained under pressure from profit-taking, weakening automotive demand, and growing supply. After a strong rally in late 2025 and early 2026, investors are now locking in gains. Automotive demand, the largest industrial use for platinum, is also set to decline further as the shift to electric vehicles reduces reliance on catalytic converters. Although the market remains in deficit, the shortfall is expected to narrow due to increased recycling supply, particularly in Europe.

Platinum futures rose above $1,900 an ounce, but remained on track for a roughly 18% decline in March, marking its worst monthly performance since October 2008. The war in the Middle East continued to broaden in the region with no end in sight, pushing the US dollar and bond yields higher. This reduced the appeal of non-yielding assets, while rising inflation risks due to elevated energy prices strengthened expectations of monetary tightening by major central banks. Platinum also remained under pressure from profit-taking, weakening automotive demand, and growing supply. After a strong rally in late 2025 and early 2026, investors are now locking in gains. Automotive demand, the largest industrial use for platinum, is also set to decline further as the shift to electric vehicles reduces reliance on catalytic converters. Although the market remains in deficit, the shortfall is expected to narrow due to increased recycling supply, particularly in Europe.

Platinum decreased 5% to 1829.6 USD/t.oz