Platinum Soars to 18-Year High

Platinum futures rose around $1,780 an ounce, approaching an eight-week high and tracking a broader rally across the precious metals complex. Investment demand for precious metals improved as Chinese institutional investors increased bullion holdings amid heightened market volatility, with gold-backed ETF in China recording their longest streak of inflows in months. Meanwhile, AI and data-center expansion are emerging as potential new sources of future platinum-group metals (PGM) demand. In July, Valterra Platinum said it estimated current AI-related PGM demand at 200,000–400,000 ounces annually and that it could grow fivefold by 2030, citing PGMs' electrical and thermal properties as relevant to AI infrastructure. Still, the World Platinum Investment Council expects platinum markets to remain in deficit over the longer term due to constrained mine output, particularly in South Africa, although higher prices could encourage more recycling and eventually weigh on some demand.

Platinum futures held near $1,750 per ounce, hovering around a seven-week high as weaker-than-expected US jobs data reduced expectations of further Federal Reserve tightening, while Middle East tensions capped gains. US nonfarm payrolls unexpectedly declined in July, prompting markets to lower the probability of a near-term Fed rate hike to 43.9% from 57% before the report. However, President Donald Trump stated he believed the war would end soon, while attacks by Iran and Iran-backed Houthi militants continued to fuel concerns over energy supply disruptions and inflation. Meanwhile, South Africa's Valterra Platinum, the world's largest primary platinum producer, reported a sharp rise in interim profit, supported by higher platinum-group metal prices. The company also expects AI-related infrastructure to drive demand higher, while the platinum market is projected to remain in supply deficit for another year.

Platinum futures held above $1,750 an ounce, near a seven-week high, supported by optimism over a deal to partially reopen the Strait of Hormuz. However, uncertainty lingered as Tehran seeks to restrict US and Israeli vessels from using the route, while reports of renewed Iranian attacks in the critical waterway lifted oil prices, reviving inflation concerns and higher-for-longer interest rates. Investors now await US nonfarm payrolls report for fresh clues on the Federal Reserve's policy path. Meanwhile, South African producer Valterra Platinum, the world's largest primary platinum miner with roughly 38% of global mined supply, reported a sharp increase in interim profit, driven by stronger platinum-group metal prices. The company also said it expects demand from AI-related infrastructure to grow significantly in the coming years, while broader market fundamentals remained supportive, with the platinum market still projected to post another annual supply deficit.