Platinum Attempts Recovery

Platinum futures rose toward $2,100 an ounce, attempting to rebound from a four-week low touched last week despite broader weakness in precious metals. The metal remained supported by ongoing industrial demand, particularly from automotive catalytic converters, and structurally tight supply, with mine output limited and above-ground stocks low. The global platinum market is set to remain in deficit for a fourth consecutive year in 2026, keeping prices historically elevated. Additionally, traders are likely buying the dip from last week, helping platinum outperform gold and silver as oil prices stay volatile. The Iran conflict entered its third week after US strikes on Kharg Island, raising concerns over global energy supply, while Tehran responded with attacks on Israel and regional energy infrastructure. Elevated energy costs and inflationary pressures have also reduced expectations for near-term rate cuts by the Fed and other major central banks.

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.