Platinum Hits 1-Month Low

Platinum futures slipped to around $1,900 per ounce, hitting a four-week low, as uncertainty over diplomatic progress in the Middle East kept inflation risks and expectations of prolonged high interest rates in focus. Key sticking points remain, including Iran’s demand to retain control over the Strait of Hormuz and its nuclear program, while the US continues to reject sanctions relief and what it views as an unfavorable agreement. Even if negotiations progress, elevated energy prices are likely to keep inflation under pressure and support the case for interest rates remaining higher for longer. Meanwhile, the platinum market remains structurally tight, with the World Platinum Investment Council projecting a fourth consecutive annual supply deficit in 2026. Automotive demand also remains broadly resilient, supported by hybrid vehicle growth and tighter emissions standards, while jewelry consumption weakens under higher prices, particularly in China.

Platinum decreased to 1914.00 USD/t.oz, the lowest since April 2026. Over the past 4 weeks, Platinum lost 2.18%, and in the last 12 months, it increased 79.71%.

Platinum futures traded around $1,950 an ounce, hovering near three-week lows as heightened uncertainty in the Middle East kept inflation risks elevated. Even as negotiations proceeded, US forces conducted strikes in southern Iran in what it described as defensive actions, dimming hopes of a potential peace deal. This sent oil prices higher, fueling inflation concerns and reinforced expectations that central banks could maintain tighter monetary policy for longer. Meanwhile, platinum draws support from its favorable supply-demand outlook. Strong demand from China, particularly following the launch of a new domestic platinum futures contract, has reinforced investor interest in the metal. The market also remains structurally tight, with output in major suppliers South Africa and Russia constrained by aging mines, high operating costs, and sanctions-related challenges. Expectations of solid industrial demand from the automotive sector, further added support.