Platinum Futures Near Record High

Platinum futures rose above $1,770 an ounce, reaching a fresh eight-week high and tracking broader strength across precious metals after a subdued US inflation report. US consumer inflation slowed for a second consecutive month to 3.4% in July, while rising just 0.1% from the previous month. The data reduced expectations of tighter Fed policy at its September meeting, supporting non-yielding assets such as platinum. Lower oil prices added support as markets weighed the prospects of a deal to reopen the Strait of Hormuz, potentially easing energy supply and inflation concerns. Meanwhile, AI and data-center expansion are emerging as potential new sources of platinum-group metals demand. Valterra Platinum estimates AI-related PGM demand at 200,000–400,000 ounces annually and sees it potentially growing fivefold by 2030. Still, the platinum market is expected to remain in deficit due to constrained mine output, particularly in South Africa, although higher prices could encourage recycling.

Platinum futures rose above $1,750 an ounce, hitting an eight-week high and tracking broader strength 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 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.