Platinum Prices Drop to Three-Week Low

Platinum futures dropped to $1,950 per ounce, their lowest level since early April, amid a broad sell-off in precious metals as the US and Iran failed to reach a breakthrough in negotiations, disrupting energy supplies and fueling inflation concerns. Tehran reportedly proposed reopening the Strait of Hormuz in exchange for delaying nuclear talks, though Washington is unlikely to accept the offer, with US President Trump threatening to restart strikes on Iran. Investors are also focused on upcoming central bank decisions, as elevated energy prices have intensified inflation fears and raised expectations of prolonged or further tightened monetary policy, dampening demand for non-yielding assets like bullion. Despite the price dip, the platinum market remains structurally tight, as production in South Africa and Russia, the two largest suppliers, faces ongoing challenges, including aging mines, high costs, and sanctions.

Platinum futures traded below $2,100 an ounce, down from a one-month high hit on April 17 amid broader weakness across precious metals. The decline came after efforts to resume peace talks between the US and Iran stalled and energy flows via the Strait of Hormuz remained choked. The prolonged conflict has triggered a historic energy supply shock, fueling inflation risks and raising the likelihood that central banks will keep interest rates steady for longer or even hike them, which weighed on precious metals. Meanwhile, the platinum market remains structurally tight, with output concentrated in South Africa and Russia, making production highly vulnerable to disruption. In South Africa, aging mines, high power costs, and only gradual gains from new projects like Platreef continue to limit growth, while Russia is expected to see lower output due to sanctions-related constraints. Recycling has improved but remains insufficient to offset falling mine supply.

Platinum increased to 2136.00 USD/t.oz, the highest since March 2026. Over the past 4 weeks, Platinum gained 1.45%, and in the last 12 months, it increased 119.71%.