Platinum Hits Two-Month Low

Platinum futures hovered below $2,100 an ounce, moving in a tight range near two-month lows as a strong US dollar weighed on the market amid thin trading volumes in Asia. The greenback strengthened on robust US economic data and hawkish signals from the Federal Reserve. Minutes from the latest FOMC meeting revealed policymakers were split on the rate outlook, with some signaling further hikes could be warranted if inflation remains elevated. Meanwhile, trading remained subdued due to Lunar New Year closures in major Asian markets, while heightened geopolitical tensions provided support after President Donald Trump warned Tehran to reach a nuclear deal or face consequences, with Iran hinting at possible retaliation. Supply constraints, particularly from South Africa, are also expected to continue, supporting platinum prices, while demand remains underpinned by automotive catalysts.

Platinum increased 5% to 2119.2 USD/t.oz

Platinum futures fell to around $2,000 an ounce, hitting a two-month low and tracking a broader pullback across precious metals. The decline came amid thin trading conditions due to public holidays in key markets across Asia and in the US. Easing geopolitical risks also weighed amid progress in US-Iran nuclear talks and Russia-Ukraine negotiations scheduled against the backdrop of ongoing fighting. Despite softer US inflation reinforcing expectations of Fed rate cuts later this year, cautious positioning ahead of upcoming additional data and Fed minutes limited support. Meanwhile, supply constraints from intermittent disruptions in South Africa persist, though above-ground stocks and steady recycling have eased immediate tightness. Eased EU car restrictions have also supported sentiment, but modest vehicle production and the gradual EV transition keep autocatalyst demand limited.