Platinum Prices Pull Back from Highs

Platinum futures have fallen to around $2,090 per ounce, retreating from recent peaks as a result of profit-taking, softer industrial demand, and improved supply conditions. Following a robust rally in late 2025 and early 2026, when prices surged to all-time highs, investors have begun locking in gains, triggering a sharp market correction. Investment demand is expected to fall by up to 52% this year, partly due to profit-taking by ETF holders and a slowdown in retail investment, especially in China, a major demand driver in recent years. At the same time, automotive demand, the largest industrial use for platinum, is set to decline by another 3% in 2026 as the shift to battery-electric vehicles accelerates, reducing the need for catalytic converters. While the platinum market remains in deficit, the shortfall is expected to narrow due to increased recycling supply, particularly in Europe, easing some of the upward pressure on prices.

Platinum futures rose to above $2,100 an ounce, rebounding 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.