Platinum Slips Toward 6-Month Lows

Platinum futures fell below $1,770 an ounce, moving back toward six-month lows, pressured by a stronger US dollar after the Federal Reserve signaled growing support for interest rate hikes this year. While the central bank left its policy rate unchanged, nine Fed officials now expect a rate hike by the end of 2026. New Fed Chair Kevin Warsh refrained from providing guidance on the next policy move but stressed that inflation has remained above the central bank’s target and reiterated the Fed’s commitment to restoring price stability. Meanwhile, losses were capped as oil prices declined further after US President Trump signed an interim agreement to end the war with Iran, potentially reopening the Strait of Hormuz and easing inflation concerns. The platinum market also remains structurally tight, as output from major producers South Africa and Russia remains constrained by aging mines, high costs, and sanctions-related disruptions.

Platinum increased 5% to 1797.8 USD/t.oz

Platinum futures held above $1,800 an ounce, rebounding from a recent six-month low as precious metals rallied after the US and Iran reached a tentative peace agreement that would reopen the Strait of Hormuz. The deal is set to be signed in Switzerland on June 19 and reportedly includes the lifting of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program. Oil prices declined to a near three-month low following the announcement, easing concerns over rising inflation and the prospect of interest rate hikes that have weighed on non-yielding metals. Meanwhile, the platinum market remains structurally tight, with the World Platinum Investment Council projecting a fourth consecutive annual supply deficit in 2026. Output from major producers South Africa and Russia remains constrained by aging mines, high costs, and sanctions-related disruptions, while automotive demand is supported by hybrid vehicle growth and stricter emissions standards.